Do we have to show the interest rate paid on a monthly DDA/SAV statement or can we just say Interest Paid?

Currently we say Interest Paid at .0499 and it is confusing to the customer because our TIS shows .05 APY. This is due to actual calculations based on balance changes throughout the statement cycle.

We can remove the rate and just say interest paid if that is allowable from a compliance perspective..

Example below shows Interest Paid at .0493% and the APY is .05% so it gets confusing to the customer.

I am confused - you mean that is the "Interest Rate"? I have no idea what "Interest Paid" means in the context of a percentage rate either - no wonder your customers are confused.

Do you mean the APYE (APY Earned)?

I'm sorry for the confusion. We have the APY, which is .5. When we pull the statements, the it shows the interest rate paid for the period. The interest paid is usually lower than the APY. The question asked was whether we can use the phrase 'interest paid' instead of 'interest rate paid' on the statements.

The question asked was whether we can use the phrase 'interest paid' instead of 'interest rate paid' on the statements.

Why would you do something that makes absolutely no sense? "Interest Paid" is defined in Reg DD in 1030.6:

(a)(2) Amount of interest.

1. Accrued interest. Institutions must state the amount of interest that accrued during the statement period, even if it was not credited.

2. Terminology. In disclosing interest earned for the period, institutions must use the term “interest” or terminology such as:

i. “Interest paid,” to describe interest that has been credited.

ii. “Interest accrued” or “interest earned,” to indicate that interest is not yet credited.

Thanks Randy. Our current statements show 'interest rate paid'. We are shortening it to 'interest paid'.

Yes - and what I am trying to tell you is that is not allowed. "Interest Paid" is specifically defined in the regulation and it is not the interest rate percentage. That term specific describes the amount of the interest credited to the account.

There is no requirement to disclose the simple interest rate on a periodic statement. If you don't like it or it is causing confusion, then just take it off.