Third-Party Referrals Promising Above-Market Rates on Certificates of Deposit

Details

• Publisher's site:
  https://www.fdic.gov/
• Corporate Authors:
  Federal Deposit Insurance Corporation (FDIC)
• Description:
  FDIC-insured institutions should be aware of any unsolicited deposits received through third- party referrals. Certain insurance companies and other financial services firms (third parties) are advertising above-market rate certificates of deposit (CDs) to attract customers. When a customer buys the advertised CD, the customer is referred to the Web site of an FDIC-insured institution with the third party "making up" the difference between the insured institution's actual rate and the advertised above-market rate. This practice may cause a contradiction with the terms in the insured institution's Truth-in-Savings disclosures. In some cases, these third parties have used the FDIC official sign, seal, logo, or similar representations in connection with these offers.
• Content Notes:
  FIL-44-2008
• Subject:
  Liquidity, Funds Management and Sensitivity to Market Risk
• Dataset Download URL:
  https://www.fdic.gov/news/financial-institution-letters/2009/fil09032.html
• Format:
  PDF
• Release Date:
  06/19/2009
• Update Date:
  11/14/2018
• Withdrawn Date:
  12/01/2018
• Agencies Involved:
  Federal Deposit Insurance Corporation (FDIC)
• Fdic Employee Involved:
  Patricia Colohan ; Martin Thompson
• Related Regulation:
  12 C.F.R. Part 337.6
• Source:
  FDIC Website
• Memorandum To:
  FDIC-Supervised Institutions
• FIL Number:
  FIL-32-2009
• Main Document Checksum:
  urn:sha256:d2e87275665acb0be536af036e06cfbc80e5f073f6ddbc8e8148aa4717f84bb2
• Download URL:
  https://archive.fdic.gov/view/fdic/7217/fdic_7217_DS1.pdf
• File Type:
  [PDF - 1.26 MB ]