We have a situation where a customer is electing to open a savings account but does not want to earn interest (for religious purposes) Systematically the only way to accomodate this remove the interest code. Would we be required to have specific disclosures for this type of account. Would we be required to gain the customers signature stating they did not wish to have interest.

They'll do that when they agree to the terms of your contract/agreement. You'll state to them the APY, 0%, in the disclosures.

Unfortunately, that isn't much less than many customers get today anyway.

I am just curious, what religion prohibits earning interest?

I don't recall the religion, but we had the same thing on a physician some years back. I want to say they also had no debt.

I am told it is in relationship to Somali populations in Seattle and Minneapolis.

I believe that Islam proscribes the charging of interest on loans, and Islamic banks have developed interesting ways to earn income when lending. Since much of Somalia's population is Islamic, perhaps you have found the connection. But I comment more out of ignorance that knowledge here.

I think a lot of customers, and not for religious purposes, would already feel that their accounts are not earning interest! Ha (Since rates are so low!)

The Islamic religion prohibits the charging or collecting of interest..and in the event interest is collected, it must be donated to the poor...It is treated as a means of assisting the poor and bringing thier living standards up rather than the rich getting richer and the poor getting poorer.Of course this flies smack in the face of basic tenets of the banking industry, which like you say results in some pretty creative ways to go around it.