What are the legal requirements for a bank to open a savings account for an individual customer? From what I understand, banks usually require (1) a signature card and (2) the following identity information: name, address, date of birth and identification number. I don't need any clarification on the identity requirements for Know Your Customer compliance. I am looking for more clarification on the requirements for the signature card. Is the signature card required by law to open a bank deposit account? If so, what is the law and what is the legal definition of a signature card (e.g. the required elements for a signature card)?
Unless your State has some specific requirements by law or regulation, a signature card is nothing more than an acknowledgment of the depositor's contract between the bank and the depositor. FDIC insurance regulations, however, do require that a signature card be completed (except for CDs) as a prerequisite to insurance coverage and to be used in determining the amount of that coverage.
First published on BankersOnline.com 3/19/12