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