APY on TISA

Posted By: bluesky

APY on TISA - 01/22/15 04:29 PM

We have a CD at a rate of 1.00% which yields 1.00% due to how we calculate CD interest. On our TISA disclosure, the APY is displaying as 1.01% We are told this is a system limitation and there is a variance allowed by Regulation?? I do not think we should disclose 1.01% as the yield when it is actually 1.00% Has anyone ever heard of this variance with Truth in Savings?
Posted By: Kitty

Re: APY on TISA - 01/22/15 04:47 PM

According to ยง1030.3(f)(2) an APY is considered accurate if it is within .05% of the annual percentage yield determined in accordance with the rules in appendix A of Reg. DD.
Posted By: rlcarey

Re: APY on TISA - 01/22/15 07:00 PM

10 to 1 your disclosure system is not set up to match your product description and maybe how you have the product set up on your core system. What is so special about how you calculate interest on this CD??