From the commentary to 707.8(a): 3. “Free” or “no cost” accounts. For purposes of determining whether an account can be advertised as “free” or “no cost,” maintenance and activity fees include:
i. Any fee imposed if a minimum balance requirement is not met, or if the member exceeds a specified number of transactions.
ii. Transaction and service fees that members reasonably expect to be imposed on an account on a regular basis (see comments 4(b)(4)-1 and 2).
iii. A flat fee, such as a monthly service fee.
iv. Fees imposed to deposit, withdraw or transfer funds, including per-check or per-transaction charges (for example, $.25 for each withdrawal, whether by check, in person).

When I look at the commentary for 707.4(b)(4)-1 and 2:
(b)(4) Fees
1. Types of fees. Fees related to the routine use of an account must be disclosed. The following are types of fees that must be disclosed in connection with an account:
i. Maintenance fees, such as monthly service fees.
ii. Fees related to share deposits or withdrawals.
iii. Fees for special services, such as stop payment fees, fees for balance inquiries or verification of share and deposits, fees associated with checks returned unpaid, fees for regularly sending to members share drafts that otherwise would be held by the credit union, and overdraft line of credit access fees (if charged against the share account).
iv. Fees to open or to close an account.
v. Fees imposed upon dormant or inactive accounts.
2. Other fees. Credit unions need not disclose fees such as the following:
i. Fees for services offered to members and nonmembers alike, such as fees for certain travelers checks, for wire transfers and automated clearinghouse (ACH) transfers, to process credit card cash advances, or to handle U.S. Savings Bond Redemption (even if different amounts are charged to members and nonmembers).
ii. Incidental fees, such as fees associated with state escheat laws, garnishment or attorneys fees, to change names on an account, to generate a midcycle periodic statement, to wrap loose coins, for photocopying, for statements returned to the credit union because of a wrong address, and locator fees.

The fact that the commentary to 707.8 refers to 707.4 makes me believe that this should be contained in almost every advertisement for a deposit account. If it is just maintenance activity fees, then I don’t think the disclosure is necessary, but because the commentary points to other commentary that mentioned return check fees and such…. I can’t seem to straighten out the disclosure requirement.

Does anyone know if I am interpreting this correctly? Or do we only have to include "fees may reduce earnings" on deposit advertisements when the account has a activity or maintenance fee?

I'm going to disagree slightly with the estimable BrianC on this one. If your question is when the warning "Fees could reduce earnings" must be included, the answer comes from the official comment to 1030.8(c)(5):

1. Scope. This requirement applies only to maintenance or activity fees described in comment 8(a).

So you look at the comment to 8(a) - it describes what are and are not maintenance or activity fees:

For purposes of determining whether an account can be advertised as “free” or “no cost,” maintenance and activity fees include:

i. Any fee imposed when a minimum balance requirement is not met, or when consumers exceed a specified number of transactions.

ii. Transaction and service fees that consumers reasonably expect to be imposed on a regular basis.

iii. A flat fee, such as a monthly service fee.

iv. Fees imposed to deposit, withdraw, or transfer funds, including per-check or per-transaction charges (for example, $.25 for each withdrawal, whether by check or in person).

4. Other fees. Examples of fees that are not maintenance or activity fees include:

i. Fees not required to be disclosed under § 1030.4(b)(4).

ii. Check printing fees.

iii. Balance inquiry fees.

iv. Stop-payment fees and fees associated with checks returned unpaid.

v. Fees assessed against a dormant account.

vi. Fees for ATM or electronic transfer services (such as preauthorized transfers or home banking services) not required to obtain an account.

So this indicates that stop payment fees, NSF/Returned check fees, or other fees not associated with normal or required account activity do not trigger the "fees may reduce earnings" statement.

For credit unions the reference would be to NCUA Regulations Section 707.8, but the official comments read the same.

I stand corrected rainman. Thanks for setting me straight. I deleted my previous post so as not to add confusion to the discussion, but wanted to publicly say thanks.

Brian

No one is correct 100% of the time.*

*Except my wife.