I am doing a disclosure review and have myself totally confused about 1) the 7 day withdrawal notice for interest bearing accounts and 2) determining which of our accounts are NOW accounts.

1) For the 7 day withdrawal notice, am I correct that this should be in our disclosure/contract for all interest bearing accounts (both personal and business) for savings, money market, and NOW? I’m thinking the only accounts that don’t need the 7 day notice are CD’s and interest bearing DDA’s?

2) For determining which accounts are NOW accounts, I think this is driven by our call report. I know very little about the details of the call report, so when I talked to our call report person I felt like I wasn’t asking the right questions. Can anyone direct me to an item number on the call report that would help me understand what I’m looking for in regards to NOW accounts?

The deposit account agreement for savings accounts, MMDAs and NOW accounts need to include a statement that the bank reserves the right to require at least 7 days' advance notice of an intended withdrawal from the account.

Pursuant to comment 4(b)(5)-1.iii. to Regulation DD, you do not need to disclose (as part of your TISA disclosures) reservations of right to require notices for withdrawals from accounts required by federal or state law, but you are required to disclose the limitations required by Regulation D on the number of withdrawals or transfers from a savings account or MMDA.

The Call Report doesn't list accounts, it provides a total count or amount for accounts by type. Your Call Report staff should be able to tell you how an account is coded to have its balance included in specific totals in the Call Report (class codes, for example). But a more practical place to find this information would probably be your operations back office staff. Ask them how they recognize a NOW account, for example.

I have 2 follow up questions to an older post:
1. I'm assuming the 7 day withdrawal notice for savings/MMDA/NOW accounts applies to disclosures for both personal and business accounts?
2. If we find a business MMDA that we have not disclosed the 7 day notice, could we just add the notice to disclosures for new accounts going forward, or would we be expected to notify current account holders also?

1) The 7 day rule does apply to both personal and business accounts. (For clarification purposes, entities (LLC, inc. etc) are still prohibited from having a NOW account, so it technically doesn't apply to all business NOW accounts.)

2) If you don't have the 7 day right in the contract/disclosures of an MMDA, then the account is not a "savings deposit" account by definition and this could lead to Call Report violations for incorrectly reporting a demand deposit account as a savings account. To technically comply, you could either convert the account to a demand deposit account or provide the disclosure to make it a MMDA and ultimately a savings account.