Recently my bank has had a lot of customers coming in to open a CD and asking for the interest checks to be sent to them. Are we able to pay a higher rate to customers who either compound their interest or have it credited to another account at our bank and a lower rate to customers who want a check?

If so, how do we have to disclose this in any ads we may run?

Thanks

Yes, you can do that. If you do so, you must disclose it in the terms and conditions, similarly as if it were a tiered or stepped rate product.