When our bank issues CDs we draw up the documents. The original paper CD is kept by the bank with a receipt going to the customer. The CD & receipt are signed by the New Account Rep. The customer does not actually sign anything. Are other banks having the customer sign a signature card? Is it required? Thanks for any help!

Why is the bank keeping the original? Why would the bank want to go to the trouble to issue a receipt and maintain the original in safe keeping. Give it to the customer and let him/her be responsible for bringing it back when it matures. If automatically renewable, they don't have to do anything. If lost, prepare an affidavit and issue another.

Our bank gives the customer the original. Customer signs either the face of the CD instrument for W-9 verification or a separate W-9 form. We do not require a signature card. Our CD forms has an original and two copies. One copy is used as the GL entry with the customer's check, the other copy is given to the customer so that they can have a copy to take home if they choose to put the original in their safe deposit box.

Since this is NOT a transactional account and we require the customer to bring back original for cashing in, we ID that person, so no signature card is required.

Many banks give the customer only a receipt and don't require anything more than identification to redeem the account. In any event, the FDIC doesn't require signatures on a CD account in order to cover it for deposit insurance (it does for all other types of accounts).

Thanks John, can you tell me where I can find reference to the FDIC and not requiring the signature?

FDIC rules and regulations, 122 CFR Part 330. Section 330.9(c)(2)

A BIG Thank you John!