I contacted a well known internet bank to open a savings account. However, when filling out the application I noticed that it only had space available for 1 or 2 owners. I wanted to list a beneficiary (POD) and didn't see where I could do this. I learned from a recent death in the family, how time saving it is to have a POD listed on banking accounts. Anyways, when I contacted their customer support line, they said they do not offer PODs. I have never heard of such a thing. Does a bank have the right to deny customers from listing PODs? It seems like that would be more paperwork for them if/when the accountholder dies.

I do not believe there are any regulations that require banks to offer payable on death programs and services.

hmm, interesting. It seems like so much is regulated in banking I *thought* this would be too. In 20 yrs, I've never come across a bank that didn't offer the ability to list beneficiary. I guess by not offering that service, they have excluded themselves as a banking choice for me. What a bummer because they had a much better rate than my local bank. Thanks for your input.

Please understand this was just my opinion, but it may explain how they can offer much higher rates that local brick and mortor branches. They don't need all the staff and other resources to be a full service bank. Handling the paperwork invovled in PODs requires more staff, more than likely.

I understand and appreciate your thoughts. My other concern was for FDIC coverage. Using the EDIE calculator on the FDIC website, if I have an account with a POD I can be assured my deposits will be fully insured by the FDIC. That's why I was thinking it might be covered by federal law or something.