NOW Account Rules-7 Day Notice Interest Bearing

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Question:

In order to have a NOW account, does the account contract have to disclose the reservation of the right at any time to require not less than 7 days notice in writing before any withdrawal from an interest bearing account?

Answer:

Regulation D requires that a bank must reserve the right to require the notice for savings deposits (including MMDAs) and NOW accounts. That fact does not have to be included in TISA disclosures, but in order for the bank to reserve the right, I believe that the statement must be included somewhere in the deposit contract or agreement.

First published on BankersOnline.com 4/9/12