Contract Specified No Additional Deposits to CD

Question:

What are the ramifications of allowing additional deposits to a certificate of deposit when the contract specifically prohibits that? No additional disclosures are given to the customer upon receipt of the additional funds.

Answer:

Arguably, the TISA disclosure was wrong. Also, if the rate being paid on the original instrument is higher than currently available there may be a suggestion that a bank employee is abusing his position.

First published on BankersOnline.com 1/23/06