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Adding to Time Acct. After Initial Funding

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Question: 
Can we put a cap on how much may be added to a time account after the initial funding? For example, if a customer opens a time deposit with $5,000 and then wants to add $100,000, we would not allow that. Can we put a restriction in place that you could not add more to the account during the term than the original amount, so if the account was opened with $5,000 that they could not add more than an additional $5,000? Also can we allow an HSA CD to be a time account, or are there restrictions on this?
Answer: 

There is no requirement to allow additional deposit to a CD. If you choose to allow additional deposits, you can limit or condition them however you want, as long as you disclose it properly.

An HSA account can be a DDA, Savings, or a CD in any combination, if you have the ability to service such an account. It is no different than an IRA, which can have a cash account and also be invested in a wide variety of investment vehicles, i.e., CDs, stocks, bonds, etc. The HSA account is the over riding parent account, the investments that are held in the account are more like sub-accounts.

First published on 04/28/2019

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