I am struggling here and I don't know why this is so hard for me to understand. If we offer an account that pays interest on a tiered level, for example, .50% on amounts $5000 or less only and .050% only on balances above $5000, do we have to disclose an APY range for the second tier? Am I understanding this correctly? And if so, how do we figure this range?

So for example: We have an account with $8000.00 in it. We pay .50% on the first $5000 and .05% on the $3000 balance over the first $5000. Do our disclosures have to show an APY range for the second tier? And if so, can somebody please help me figure this out.....because I'm not comprehending how to figure it.

Thanks

Yes, an APY range is required as the more money I put in that account, the lower my APY will be since the ratio of funds at the lower interest rate increases.

Check out Tiering Method B in the Appendix to Regulation DD.

https://www.bankersonline.com/regulations/12-1030-appa

The FFIEC has an APY Calculator to help you with Tiering Method B.

https://www.ffiec.gov/examtools/FFIEC-Calculators/APY/#/home

Thank you Brian!!