Q: What actions are required of an IDI in order to begin paying interest on DDAs?
A: The FDIC has imposed no specific conditions that must be satisfied if an IDI chooses to
offer new interest-bearing DDAs to its customers. However, as is always the case, the FDIC
expects IDIs to act in a commercially reasonable manner and to comply with applicable
state and federal laws and regulations in establishing and marketing such accounts.
If an IDI modifies existing DDA agreements to allow for the payment of interest, then (as
discussed in more detail in FAQs 31 through 33) pursuant to 12 C.F.R. § 330.16(c)(3) the
IDI must notify affected customers in writing that their DDAs are no longer fully insured as
noninterest-bearing transaction accounts under the Dodd-Frank Deposit Insurance
This can be found in - FAQ#18 of FDIC’s FAQs. FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf