Yes, we believe you may stop sending CD interest notices when interest is credited to a deposit account or back to the CD. Although some banks provide interest notices as a courtesy, they are not required under Regulation DD.

Under Regulation DD, customers are entitled to receive disclosures when an account is opened, on request, when account terms are changed, when a periodic statement is sent, and for most time accounts, before the account matures. Although your initial account disclosure for the CD must indicate the frequency with which interest will be compounded and credited, subsequent interest notices are not required.

For resources related to our guidance, please see:

• Comptroller’s Handbook, Depository Services, page 71 (August 2010) (“The purpose of Regulation DD is to enable consumers to make informed decisions about their accounts at depository institutions through the use of uniform disclosures. . . . A consumer is entitled to receive disclosures:
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  • When an account is opened;
     
  • Upon request;
     
  • When the terms of the account are changed;
     
  • When a periodic statement is sent; and
     
  • For most time accounts, before the account matures.”)
     
• Regulation DD, 12 CFR 1030.4(b)(2)(i) (“Account disclosures shall include the following, as applicable: . . . (2) Compounding and crediting — (i) Frequency. The frequency with which interest is compounded and credited.”)