Federal Deposit Insurance Corporation Regulations and Non-Member State Bank Activities regarding Certificate of Deposit Maturity Notification

A survey was performed of the Federal Deposit Insurance Corporation's (FDIC) regulations and of nonmember state bank activities regarding certificate of deposit (CD) maturity notification. FDIC has not issued regulations covering such notification, and procedures are left to the individual bank's discretion. Notification procedures varied among institutions. Five of the nine banks reviewed had more thorough procedures than the others, including sending their depositors information on other available plans. The timing for issuing maturity notices varied among banks up to 45 days in advance of maturity. The Division of Bank Supervision should review CD maturity notification procedures and, if it is established that there is a correlation between the procedures and factors regarding bank size and location, a notification policy could be established accordingly.