Appendix B to Part 230--Model Clauses and Sample Forms
Table of contents
B-1--Model Clauses for Account Disclosures (Section 230.4(b))
B-2--Model Clauses for Change in Terms (Section 230.5(a))
B-3--Model Clauses for Pre-Maturity Notices for Time Accounts (Section
230.5(b)(2) and 230.5(d))
B-4--Sample Form (Multiple Accounts)
B-5--Sample Form (Now Account)
B-6--Sample Form (Tiered Rate Money Market Account)
B-7--Sample Form (Certificate of Deposit)
B-8--Sample Form (Certificate of Deposit Advertisement)
B-9--Sample Form (Money Market Account Advertisement)
B-1--Model Clauses for Account Disclosures
(a) Rate information
(i) Fixed-rate accounts
The interest rate on your account is ____% with an annual percentage
yield of ____%. You will be paid this rate [for (time period)/until (date)/ for at least 30 calendar days].
(ii) Variable-rate accounts
The interest rate on your account is ____% with an annual percentage
yield of ____%.
Your interest rate and annual percentage yield may change.
Determination of Rate
The interest rate on your account is based on (name of index) [plus/minus a margin of ________].
or
At our discretion, we may change the interest rate on your account.
Frequency of Rate Changes
We may change the interest rate on your account [every (time
period)/at any time].
Limitations on Rate Changes
The interest rate for your account will never change by more than
____% each (time period).
The interest rate will never be [less/more] than ____%.
or
The interest rate will never [exceed____% above/drop more than ____% below] the interest rate initially disclosed to you.
(iii) Stepped-rate accounts
The initial interest rate for your account is ____%. You will be
paid this rate [for (time period)/until (date)]. After that time, the nterest rate for your account will be ____%, and you will be paid this rate [for (time period)/until (date)]. The annual percentage yield for your account is ____%.
(iv) Tiered-rate accounts
Tiering Method A
If your [daily balance/average daily balance] is $____ or more, the interest rate paid on the entire balance in your account will be ____% with an annual percentage yield of ____%.
If your [daily balance/average daily balance] is more than $____, but less than $____, the interest rate paid on the entire balance in your account will be ___% with an annual percentage yield of ____%.
If your [daily balance/average daily balance] is $____ or less, the interest rate paid on the entire balance will be ____% with an annual percentage yield of ____%.
Tiering Method B
An interest rate of ____% will be paid only for that portion of your [daily balance/average daily balance] that is greater
than $____. The annual percentage yield for this tier will range from ____% to ____%, depending on the balance in the account.
An interest rate of ____% will be paid only for that portion of your [daily balance/average daily balance] that is greater
than $____, but less than $____. The annual percentage yield for this tier will range from ____% to ____%, depending on the balance in the account.
If your [daily balance/average daily balance] is $____ or less, the interest rate paid on the entire balance will be ____% with an annual percentage yield of ____%.
(b) Compounding and crediting
(i) Frequency
Interest will be compounded [on a ____ basis/every (time period)].
Interest will be credited to your account [on a ____ basis/every (time period)].
(ii) Effect of closing an account
If you close your account before interest is credited, you will not receive the accrued interest.
(c) Minimum balance requirements
(i) To open the account
You must deposit $______ to open this account.
(ii) To avoid imposition of fees
A minimum balance fee of $______ will be imposed every (time period) if the balance in the account falls below $______ any day of the (time period).
A minimum balance fee of $______ will be imposed every (time period) if the average daily balance for the (time period) falls below $______. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.
(iii) To obtain the annual percentage yield disclosed
You must maintain a minimum balance of $______ in the account each
day to obtain the disclosed annual percentage yield.
You must maintain a minimum average daily balance of $______ to
obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.
(d) Balance computation method
(i) Daily balance method
We use the daily balance method to calculate the interest on your
account. This method applies a daily periodic rate to the principal in the account each day.
(ii) Average daily balance method
We use the average daily balance method to calculate interest on
your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.
(e) Accrual of interest on noncash deposits
Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).
or
Interest begins to accrue on the business day you deposit noncash
items (for example, checks).
(f) Fees
The following fees may be assessed against your account:
______________________________$________
______________________________$________
______________________________$________
________(conditions for imposing fee)$________
__________________________________% of ________.
(g) Transaction limitations
The minimum amount you may [withdraw/write a check for] is $______.
You may make ________ [deposits into/withdrawals from] your account each (time period).
You may not make [deposits into/withdrawals from] your account until the maturity date.
(h) Disclosures relating to time accounts
(i) Time requirements
Your account will mature on (date).
Your account will mature in (time period).
(ii) Early withdrawal penalties
We [will/may] impose a penalty if you withdraw [any/all] of the
[deposited funds/principal] before the maturity date. The fee imposed will equal ______ days/week[s]/month[s] of interest.
or
We [will/may] impose a penalty of $______ if you withdraw [any/all] of the [deposited funds/principal] before the maturity date.
If you withdraw some of your funds before maturity, the interest
rate for the remaining funds in your account will be ______% with an annual percentage yield of ______%.
(iii) Withdrawal of interest prior to maturity
The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.
(iv) Renewal policies
(1) Automatically renewable time accounts
This account will automatically renew at maturity.
You will have [______ calendar/business] days after the maturity
date to withdraw funds without penalty.
or
There is no grace period following the maturity of this account to
withdraw funds without penalty.
(2) Non-automatically renewable time accounts
This account will not renew automatically at maturity. If you do not renew the account, your deposit will be placed in [an interest-bearing/a noninterest-bearing] account.
(v) Required interest distribution.
This account requires the distribution of interest and does not
allow interest to remain in the account.
(i) Bonuses
You will [be paid/receive] [$______ /(description of item)] as a
bonus [when you open the account/on (date) ______].
You must maintain a minimum [daily balance/average daily balance] of $______ to obtain the bonus.
To earn the bonus, [$______ /your entire principal] must remain on
deposit [for (time period)/until (date)______].
B-2--Model Clauses for Change in Terms
On (date), the cost of (type of fee) will increase to $______.
On (date), the interest rate on your account will decrease to ______% with an annual percentage yield of ______%.
On (date), the minimum [daily balance/average daily balance] required to avoid imposition of a fee will increase to $______.
B-3--Model Clauses for Pre-Maturity Notices for Time Accounts
(a) Automatically renewable time accounts with maturities of one
year or less but longer than one month
Your account will mature on (date).
If the account renews, the new maturity date will be (date).
The interest rate for the renewed account will be ______% with an
annual percentage yield of ______%.
or
The interest rate and annual percentage yield have not yet been
determined. They will be available on (date). Please call (phone number) to learn the interest rate and annual percentage yield for your new account.
(b) Non-automatically renewable time accounts with maturities longer than one year
Your account will mature on (date).
If you do not renew the account, interest [will/will not] be paid
after maturity.
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If your [daily balance/average daily balance] is $____ or more, the interest rate paid on the entire balance in your account will be ____% with an annual percentage yield of ____%.
