POD on Statement If On Account Agreement?

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Question:

Should the words POD appear on a customer's bank account statement if it appears on the customers account agreement?

Answer:

Under state law, all that is likely to be necessary is to make the appropriate disposition on the bank's records; i.e. the signature card.

To be insured by the FDIC as a revocable trust account, the title must incorporate the appropriate acronym; e.g. POD, ITF, ATF. However, the beneficiary's name need not be mentioned in the title.

The FDIC will rely on the information contained in the bank's electronic deposit account records, not the headings on the customer's bank statements.

[See 12 CFR Part 330, Section 330.10(b)]

First published on BankersOnline.com 1/14/13