Deposit Operations Flashcards

A customer wants to add a joint owner to an existing savings account. What documentation is typically required from the new joint owner?

Answer: Government-issued ID and a completed signature card

Adding a joint owner requires the new party to provide government-issued ID for CIP compliance and sign a new signature card.

Which type of endorsement restricts a check to deposit only into a specific account?

Answer: Restrictive endorsement

A restrictive endorsement (e.g., 'For deposit only to account #12345') limits how the check can be processed.

Under Regulation CC, what is the maximum hold period a bank can place on a local check deposited by a new account customer?

Answer: 5 business days

For new accounts (open less than 30 days), Regulation CC allows up to a 5-business-day hold on local checks.

A customer deposits $12,000 in cash in one transaction. What must the teller do?

Answer: File a Currency Transaction Report (CTR)

Cash transactions over $10,000 require the bank to file a Currency Transaction Report (CTR) with FinCEN.

What happens to the interest accrued on a CD if a customer withdraws funds before the maturity date?

Answer: An early withdrawal penalty is charged, which may forfeit some interest

Early CD withdrawals typically incur a penalty of forfeited interest, the amount depending on the CD term and bank policy.

A teller notices a customer is making their third $3,000 cash deposit this week. What concern does this raise?

Answer: Structuring (smurfing)

Structuring is the act of breaking up large transactions to stay below the $10,000 CTR reporting threshold, which is illegal under the BSA.

Which account feature allows a customer to automatically transfer funds from savings to checking to cover overdrafts?

Answer: Overdraft protection transfer

An overdraft protection transfer automatically moves funds from a linked savings account to cover a checking account shortfall.