We are not aware of any limitations on charging an account closing fee, provided that the fee is disclosed as required by Regulation DD. The Illinois Banking Act permits banks to determine appropriate deposit account fees in accordance with their prudent business judgment and safe and sound operating standards.

However, we recommend caution regarding the imposition of a hold on all newly opened accounts in the amount of the account closing fee. At the very least, your account agreements should very clearly disclose that this amount will be held and the time period for which it will be held. Otherwise, this practice may conflict with the general funds availability requirements for deposits into the newly opened accounts under Regulation CC.

For resources related to our guidance, please see:

• Regulation DD, 12 CFR 1030.4(b)(4) (“Account disclosures shall include the following, as applicable: . . . (4) The amount of any fee that may be imposed in connection with the account (or an explanation of how the fee will be determined) and the conditions under which the fee may be imposed.”)

• Regulation DD, Official Interpretations, Paragraph 4(b)(4), Comment 1 (“Covered fees. The following are types of fees that must be disclosed: . . . ii. Fees to open or to close an account.”)

• Illinois Banking Act, 205 ILCS 5/5e(b) (“The establishment of account service charges and the amounts of the charges not otherwise limited or prescribed by law is a business decision to be made by a bank according to prudent business judgment and safe and sound operating standards. In establishing account service charges, the bank may consider, but is not limited to considering, the costs incurred by the bank, plus a profit margin, for providing the service, the deterrence of misuse of the bank’s services, the establishment of the competitive position of the bank in accordance with the bank’s marketing strategy, and the maintenance of the safety and soundness of the bank.”)

• Regulation CC, 12 CFR 229.10(a) (“A bank shall make funds deposited in an account by cash available for withdrawal not later than the business day after the banking day on which the cash is deposited, if the deposit is made in person to an employee of the depositary bank. . . .”)

• Regulation CC, 12 CFR 229.10(b) (“A bank shall make funds received for deposit in an account by an electronic payment available for withdrawal not later than the business day after the banking day on which the bank received the electronic payment. . . .”)
   
• Regulation CC, 12 CFR 229.12(b) (“Except as provided in paragraphs (d), (e), and (f) of this section, a depository bank shall make funds deposited in an account by a check available for withdrawal not later than the second business day following the banking day on which funds are deposited . . . .”)