CD Maturity Notices

I have a question about the timeline for CD maturity notices for 12 month CDs that renew automatically. We provide a ten-day grace period and I'm trying to pin down on much advance notice (10, 20, or 30 days) need to be provided to the consumer in advance of their CD maturing.

1030.5(b) Notice before maturity for time accounts longer than one month that renew automatically. For time accounts with a maturity longer than one month that renew automatically at maturity, institutions shall provide the disclosures described below before maturity. The disclosures shall be mailed or delivered at least 30 calendar days before maturity of the existing account. Alternatively, the disclosures may be mailed or delivered at least 20 calendar days before the end of the grace period on the existing account, provided a grace period of at least five calendar days is allowed.

10 days before maturity + 10 day grace period = 20 days before the end of the grace period.

If you have a 10 day grace period, then you need to send the maturity notices a minimum of 10 days prior to maturity. The regulation specifies if you have a grace period in excess of 5 days then you must give notice at least 20 days prior to expiration of the grace period.

Regulation DD 1030.5

(b) Notice before maturity for time accounts longer than one month that renew automatically. For time accounts with a maturity longer than one month that renew automatically at maturity, institutions shall provide the disclosures described below before maturity. The disclosures shall be mailed or delivered at least 30 calendar days before maturity of the existing account. Alternatively, the disclosures may be mailed or delivered at least 20 calendar days before the end of the grace period on the existing account, provided a grace period of at least five calendar days is allowed.

Thank you both.

So a follow up question on this. If a CD automatically renews on 5/9/21 and the maturity notice is dated 4/30/21, that would not be sufficient notice?

It would be as long as you have a 10 day grace period giving the customer until 5/19 to make changes or cash in the CD.

And if the CD renews on 5/9 instead of 5/19?

10 days before maturity (4/30/21 - 5/9/21)) + 10 day grace period (5/10/21 - 5/19/21) = 20 days before the end of the grace period.

You're fine.