Add-On CD

Posted By: complofcr

Add-On CD - 10/18/17 02:19 PM

I'm looking for information about an add-on CD product. What are the terms and disclosure requirements?
Posted By: John Burnett

Re: Add-On CD - 10/18/17 03:55 PM

Describe what you mean by "add-on CD."
Posted By: complofcr

Re: Add-On CD - 10/18/17 04:00 PM

One that the customer can make periodic deposits to.
Posted By: Elwood P. Dowd

Re: Add-On CD - 10/19/17 02:42 PM

The correct term is "time deposit open account."

Section 1030.4 includes the disclosure requirements. You are specifically interested in those for time deposits. Note the discussion in the commentary about the customer's ability to add to or withdraw from the account.
Posted By: complofcr

Re: Add-On CD - 10/19/17 05:17 PM

Thanks so much Ken!
Posted By: John Burnett

Re: Add-On CD - 10/19/17 09:23 PM

You will want to make sure that the deposit contract indicates that early withdrawal penalties must be imposed on any partial withdrawal made within 6 calendar days of each deposit to or withdrawal from the account.