We are researching a situation where APYEs are being potentially disclosed incorrectly. The issue doesn't appear to be consistent - so I lean towards a system glitch. The inconsistencies are minor - stating 4.49 instead of 4.50 as we disclose on our rate sheet. We have a group working on the issue and I've been given an explanation that I can't get my head around. I'm told that the inconsistency is balance related. That if the average balance is less than $2,000 then the APYE will be "short" so to speak (4.49). But if the average balance is greater than $2,000 then the APYE will be 4.50 - as we disclose on all rate sheets, marketing material, etc. I can't get my head around this. In my head, balance should have no affect. If we say we're paying 4.50APY, then unless there are extenuating circumstances in a particular statement period, the APYE should also be 4.50. In my simplistic mind, the APYE is a validation of what we've promised at account opening when we disclosed the 4.50APY. Can someone tell me if balance can indeed affect the APYE?

Without any more information, it is really hard to say. Have you ran your periodic statement APY results against the FFIEC calculator, as that is what the regulators will do.

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

No, let me do that. Thank you.