Electronic Savings Account Regulations

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Question:

What are the regulations in regards to offering an electronic savings account? We would like to offer one that limits the deposits to electronic only and encourages ATM withdrawals, We would target customers with electronic Social Security or SSI payments into their accounts.

Answer:

You will have to comply with E-sign in order to get your customer's agreement to accept disclosures (opening, statements, changes, etc.) electronically. Then, you'll treat this account just as you would any statement savings account. Reg. E will require your statements to be monthly (since you're issuing an ATM card), and the statements will have to conform to both Regulation E and Regulation DD, although they can be delivered electronically.

First published on BankersOnline.com 04/07/03