Interest Bearing Checking Account for Business

If you only offer the account and it is up to the customer to ask for it, there is no special disclosure requirement, although your personnel should take care not to misrepresent deposit insurance coverage on the account. Because the account could earn interest, it would not be covered by the FDIC's temporary unlimited coverage. Instead, it would be treated as any other account, subject to the normal $250,000 per depositor/per capacity coverage amount.

If the bank will change the terms of existing business checking accounts to permit the payment of interest, a special disclosure will be required by FDIC regulations, at 12 CFR 330.16(c)(3).

First published on BankersOnline.com 9/19/11