Statement Requirements For Passbook Savings Account

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Question:

We offer passbook savings accounts. We never send statements to our customers, just update their books. The customers are not required to use their passbooks. What regulation governs statement requirements? Can we legally not ever send statements even though we annually print statements, but do not mail them to the customers? What about electronic activity in these savings accounts?

Answer:

Unless there is a state law that applies, you would have no statement requirement unless the account is accessible via EFT. If these accounts can be EFT-accessed by anything other than a recurring preauthorized credit (like Social Security or direct deposit), you have to produce and deliver at least a quarterly statement, and a monthly one when most EFT activity posts.

First published on BankersOnline.com 07/07/03