Locked and Loaded
What does "CD" stand for in banking?
Certificate of Deposit.
When quoting CD rates to a client, must you provide the required disclosure?
Yes, disclosures must always be provided when quoting CD rates to ensure compliance and transparency.
Can a virtual banker open a CD for a client?
No, but a virtual banker may walk the client through opening it on the mobile app or Chase.com
What is the grace period for making changes to a CD after it matures?
10 days.
Can a virtual banker close a CD without considering the balance amount?
No, CDs over $15,000 require escalation for closure.
What is the primary purpose of a CD for a client?
To earn interest on a fixed sum of money over a set period of time.
Do CD rates remain the same throughout the term of the account?
Yes, for fixed-rate CDs, the rate remains the same throughout the term.
Can a virtual banker close a CD before maturity without escalation?
Yes, provided the CD balance is not above the authority limit of $15,000.
What happens to the funds if a CD is not renewed or withdrawn after maturity?
The funds are rolled into a new CD with the same term.
What is the maximum amount a virtual banker is allowed to withdraw from a CD without escalation?
$15,000.
What is the minimum term length offered for a CD?
1 month.
What is the term called when the client keeps their CD after maturity?
Auto-renewal or rollover.
Can a client request to change the term of their CD during the grace period?
Yes, clients can make adjustments during the grace period.
Can a client request an early withdrawal for only part of their CD balance?
Yes, but the early withdrawal penalty applies to the withdrawn portion.
If a client request to deposit $20,000 into an existing CD, what must happen?
The request must be escalated, as virtual bankers cannot handle amounts over $15,000.
How does the interest on a CD differ from a regular savings account?
CD interest rates are usually higher but require the funds to remain untouched for a set term.
How are CD rates affected by Federal Reserve rate changes?
CD rates often rise when the Federal Reserve increases interest rates.
Can a virtual banker waive the early withdrawal penalty on a CD?
No, only certain situations, like death or legal incompetence, may qualify for exceptions.
When renegotiating a CD is it necessary to disclose or quote the current rates to the client?
Yes, current rates must always be disclosed and quoted to ensure transparency and compliance.
Can a virtual banker calculate the potential return on a CD for a client?
No, virtual bankers do not calculate potential returns. Instead, they may direct the clients to use their own resources, keeping in mind that CD interest compounds daily.
What happens if a client withdraws funds from a CD before its maturity date?
They are subject to an early withdrawal penalty, which varies by term.
What is an APY, and how is it different from an interest rate on a CD?
APY stands for Annual Percentage Yield and includes the effects of compounding, unlike the simple interest rate.
Can a client add additional funds to a CD after it's been opened?
No, CDs are typically fixed-deposit accounts that do not allow additional contributions after opening.
If a client's CD automatically renews but they didn't want it to, what steps should a virtual banker take?
Inform the client about the grace period, during which they can make changes or withdraw the funds without penalty, and assist accordingly.
What are the authority limits for a virtual banker when renegotiating a CD?
A virtual banker may renegotiate CDs of any amount, provided that no more than $15,000 is added or withdrawn during the process.