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#1652460 - 01/18/12 09:11 PM Another Rate Board Question
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
One board-to cover deposits and loans

Deposits can say rate, apy (stated as apy and not spelled out)
and note to ask bank rep for further details? And thats it right?

Loans-if we list and call our product the "30 yr fixed rate loan" we've "triggered" by saying "30 year" right?

Thank you.

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#1652528 - 01/18/12 11:05 PM Re: Another Rate Board Question biz
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 10,113
Toano, VA
"30 yr." is a trigger term for closed end credit.
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#1662903 - 02/09/12 07:14 PM Re: Another Rate Board Question biz
Mike Baker Offline
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Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
Following up on the comment about posting deposit rate information on board [in this case an electronic sign which has a limitation on the number of alpha numeric characters]...is it legal to post the rate in the following manner, for example,
"9 Month CD Special 1.15 APY" ? Is there any law that says "APY" must be spelled out as "Annual Percentage Yield"?

Thank you. I do not work the deposit side of the bank, and I am asking on behalf of someone who does and who takes care of our electronic sign.
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#1662975 - 02/09/12 08:30 PM Re: Another Rate Board Question biz
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,914
Cape Cod
Assuming that this board is inside the bank office, you can use either "annual percentage yield" or the "APY" abbreviation. You have to also include a statement advising consumers to contact an employee for further information about applicable fees and terms.
Last edited by John Burnett; 02/09/12 08:31 PM.
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#1662981 - 02/09/12 08:38 PM Re: Another Rate Board Question biz
Mike Baker Offline
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Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
I should have clarified that the electronic sign is outside. If we are advertising more than 1 deposit product on the same "scrolling marquee" could we spell out "Annual Percentage Rate" on 1, and use APY on the others? If so, I suppose we would need to show something like the following for the 1st product: "9 Month CD Special 1.15% Annual Percentage Yield (APY)" then could we follow with "72 Month CD Special 1.99% APY"?
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"When you believe He's all you need,that will be your defining moment." [from "Defining Moment" Newsong, Sheltering Tree CD]

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#1663197 - 02/10/12 01:30 PM Re: Another Rate Board Question biz
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,914
Cape Cod
I think you're making a reasonable argument for use of APY as the marquee message scrolls, as long as you spell out "annual percentage yield" at the start of the message. You'll need to comply with the rest of the abbreviated outdoor media ad requirements in Regulation DD 1030.8. And don't forget "Member FDIC" unless the sign is affixed to your building.
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BankersOnline.com
Fighting for Compliance since 1976
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