Answer:
You should review the requirements of section 230.5(b) of Reg DD. For CDs with a term of more than a year, you essentially have to provide the same disclosures you would provide for a new account. There is an exception if you don't know the interest rate and APY at the time of the notice. The theory is that the depositor won't remember and may not still have the original disclosures. For CDs with terms of one year or less, and more than one month, you have to provide either the full disclosures or disclose any terms that may differ from the original disclosures. The theory here is that the consumer may still have the old disclosures, so there's no need to repeat them. Many banks elect to send the full disclosure anyhow, just to keep things simple.
For CDs of one month or less, it's assumed the consumer knows the CD is maturing, so no maturity notice is needed, but a change in terms notice would apply under section 230.5(a) if there will be a change to the terms as originally disclosed.
Those rules apply only to CDs that renew automatically. For CDs that don't renew automatically, there's no maturity notice requirement unless the term is longer than one year. There's a special requirement for longer term CDs, in section 230.5(c).
State laws may include other notice requirements.
First published on BankersOnline.com 6/16/08
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