Periodic Statement for Transfer of Interest COD

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Question:

Is it necessary to provide a customer with a periodic statement for a monthly transfer of interest from a certificate of deposit to one of their accounts at another financial institution?

Answer:

Such a transfer would be an EFT subject to the statement requirements of Regulation E section 1005.9 (b) if the funds are credited to the CD and then transferred to the other bank.

If the interest is instead directly deposited to the account in the other bank (without being first credited to the CD), it would not trigger the statement requirement, since there would be no account transaction. I have heard that some banks handle their CD interest payments this way; I have never confirmed that it's done.