Who must approve a withdrawal from a CD?

Who must approve a withdrawal from a CD?

• A. The Branch Manager
• B. The officer on the account
• C. The BSA Officer
• D. The Teller

Answer: (B)

Withdrawals from a CD require someone with signing authority on the account to approve the action. The officer on the account is the designated signer who can authorize transactions, ensuring proper authorization before funds are released. This protects the account from unauthorized withdrawals, which is especially important with CDs where early withdrawal can carry penalties. A teller can process the withdrawal after approval but cannot grant approval on their own; the BSA Officer handles compliance issues, not transaction approvals; and the branch manager isn’t the standard approver for routine CD withdrawals, though they may be involved in unusual situations.

Withdrawals from a CD require someone with signing authority on the account to approve the action. The officer on the account is the designated signer who can authorize transactions, ensuring proper authorization before funds are released. This protects the account from unauthorized withdrawals, which is especially important with CDs where early withdrawal can carry penalties. A teller can process the withdrawal after approval but cannot grant approval on their own; the BSA Officer handles compliance issues, not transaction approvals; and the branch manager isn’t the standard approver for routine CD withdrawals, though they may be involved in unusual situations.