Q: Does 12 C.F.R. § 330.16(c)(3) require customer notification if on or after July 21, 2011

an IDI offers a new interest-earning DDA product (but makes no changes to any

existing noninterest-bearing demand deposit agreements)?

A: No. The notice requirement in 12 C.F.R. § 330.16(c)(3) is triggered only if an IDI uses

sweep arrangements or when deposit insurance coverage on existing accounts are affected

by account modifications or other actions initiated by the IDI. Please note that an IDI is not

required to provide any FDIC mandated disclosures in connection with the opening of a

business, interest-bearing DDA. Only new consumer accounts require disclosures under the

Truth in Savings Act and its implementing regulation, Regulation DD.

This can be found in - FAQ#33 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf