If there is an APY increase to one of the tiers in a variable rate account, I assume the example used in the APY disclosure (which includes the APY range) must be adjusted at the same time the rate increases even though the disclosure states "APY accurate as of xx but may change at any time" - true? Thanks!

A disclosure provided at account opening must have the accurate APYs at the time it is handed to the consumer. If you are providing a disclosure in response to a request for information, you have seven days to get it updated.

See 1030.4(a)(2)(ii):

(2) Requests. (i) A depository institution shall provide account disclosures to a consumer upon request. If a consumer who is not present at the institution makes a request, the institution shall mail or deliver the disclosures within a reasonable time after it receives the request and may provide the disclosures in paper form, or electronically if the consumer agrees.

(ii) In providing disclosures upon request, the institution may:

(A) Specify an interest rate and annual percentage yield that were offered within the most recent seven calendar days; state that the rate and yield are accurate as of an identified date; and provide a telephone number consumers may call to obtain current rate information.

(B) State the maturity of a time account as a term rather than a date.

Thank you - so for advertisement purposes, 7 days to update?

Seven days for customers who walk into or call your institution and say, "Can I have information about XYZ account?" You may have some of these already preprinted and ready to hand out.

See the commentary to 1030.8(c)(2) for timeframes on advertising.

1. Specified date. If an advertisement discloses an annual percentage yield as of a specified date, that date must be recent in relation to the publication or broadcast frequency of the media used, taking into account the particular circumstances or production deadlines involved. For example, the printing date of a brochure printed once for a deposit account promotion that will be in effect for six months would be considered “recent,” even though rates change during the six-month period. Rates published in a daily newspaper or on television must reflect rates offered shortly before (or on) the date the rates are published or broadcast.

2. Reference to date of publication. An advertisement may refer to the annual percentage yield as being accurate as of the date of publication, if the date is on the publication itself. For instance, an advertisement in a periodical may state that a rate is “current through the date of this issue,” if the periodical shows the date.

Thanks again, can you point me to the 7 day requirement?

1030.4 Account disclosures.
(a) Delivery of account disclosures.

(2) Requests. (i) A depository institution shall provide account disclosures to a consumer upon request. If a consumer who is not present at the institution makes a request, the institution shall mail or deliver the disclosures within a reasonable time after it receives the request and may provide the disclosures in paper form, or electronically if the consumer agrees.

(ii) In providing disclosures upon request, the institution may:

(A) Specify an interest rate and annual percentage yield that were offered within the most recent seven calendar days; state that the rate and yield are accurate as of an identified date; and provide a telephone number consumers may call to obtain current rate information.

(B) State the maturity of a time account as a term rather than a date.

Thanks!

Based on this section of the commentary below (related to 1030.8(c)(2) - timeframes on advertising), what would be the protocol for online advertisements on a third party site? Is it expected that updates will be made timely or is it okay for a change to a variable rate to not be updated on the third party site for say 3 to 6 months?

1. Specified date. If an advertisement discloses an annual percentage yield as of a specified date, that date must be recent in relation to the publication or broadcast frequency of the media used, taking into account the particular circumstances or production deadlines involved. For example, the printing date of a brochure printed once for a deposit account promotion that will be in effect for six months would be considered “recent,” even though rates change during the six-month period. Rates published in a daily newspaper or on television must reflect rates offered shortly before (or on) the date the rates are published or broadcast.

If it were your website, I'd say it would need to be updated as rates change.

As for a third-party site, does you bank supply information to the third-party for updating rates? How often can you do so? Or does the site look out over the metaverse to see when rates on bank sites are changing, and they aren't very good at it? Does your bank pay the third party to advertise its rates on their site? If you can't keep it current, whatever you pay them is too much.

I am not enthusiastic about the idea of depending on a third-party site to advertise a bank's deposit rates.

How about app store content (Apple /Google) - would this be treated more as a brochure, or would variable rates need to be updated in real time? Thank you!