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#2178293 - 05/16/18 01:53 PM APY and Business Accounts
Bville Offline
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Bville
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Posts: 1,282
Out West
Is it customary to put an APY on advertisements and account opening disclosures for Business deposit accounts?

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Deposits and Payments
#2178301 - 05/16/18 02:15 PM Re: APY and Business Accounts Bville
John Burnett Offline
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John Burnett
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Cape Cod
No. It's not required.
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#2178304 - 05/16/18 02:23 PM Re: APY and Business Accounts Bville
Bville Offline
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Bville
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But does it do any harm to disclose it? Are there solid reasons not to disclose it?

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#2178315 - 05/16/18 02:57 PM Re: APY and Business Accounts Bville
rlcarey Online
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rlcarey
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Galveston, TX
Not required is not the equivalent of not allowed.
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#2178468 - 05/16/18 11:16 PM Re: APY and Business Accounts rlcarey
Bville Offline
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Sorry, I'm not understanding your point. Does it create a problem if we do disclose it?

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#2178470 - 05/17/18 01:01 AM Re: APY and Business Accounts Bville
BrianC Online
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APY disclosure is not required, which mean you can choose to do it voluntarily is different than not allowed which means you are prohibited from doing it.

As John and Randy have both already stated, it's not required which means you can choose to disclose an APY to businesses voluntarily. As to any problems it would create...only if you disclose the APY incorrected (e.g. wrong number.)
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#2178479 - 05/17/18 12:11 PM Re: APY and Business Accounts Bville
Richard Insley Online
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Richard Insley
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Toano, VA
"Annual percentage yield" is a creation of the TIS Act--a law covering nothing but deposit contracts with consumers. Accordingly, the term has no legal meaning outside that context. It's hard to see how you can shoot yourself in the foot by providing an APY, accurately calculated or otherwise, to an entity that is not entitled to receive one. Presented as a disclosure, it's extraneous information--so unless you somehow elevate it to an enforceable part of the deposit contract with the business entity, it's meaningless.
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#2178564 - 05/17/18 05:01 PM Re: APY and Business Accounts Bville
Bville Offline
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Thank you all.

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