• For variable-rate accounts—A variable-rate account is an account for which the interest rate may change after the account is opened, unless the institution contracts to give at least thirty calendar days’ advance written notice of a rate decrease. Variable-rate accounts include those for which the rate change is determined by reference to an index, by use of a formula, or merely at the discretion of the institution. If an institution offers variable-rate accounts, it must disclose the following:
– That the interest rate and annual percentage yield may change
– How the interest rate is determined
- If an institution reserves the right to change rates and does not tie changes to an index, it must disclose the fact that rate changes are solely within the institution’s discretion.
– The frequency with which the interest rate may change
- An institution that reserves the right to change rates at any time must state that fact.
– Any limit on the amount the interest rate will change at any one time or during a specified period
Nothing changes, if nothing changes. (from a good friend of mine)