Help!!!

we're looking to promote a MM acct based on 90day T-Bill rate plus 10 basis points for a period of 7 months. Thereafter, rate will be strictly based on 90 day T-bill.

The question is, being that the current t-bill is variable and adjusted on a weekly basis, what would be the proper language in our newspaper disclosure? Are there special requirements within the disclaimer pertaining to the fact that teaser rate is only for 7 months?

Thanks in advance for your assistance.

fg

If you include the information you listed in your post, you should be alright. The ad must indicate that the rate can change and you have said that, as well as how the rate will determined after the initial period.

You might want to add what the current rate for the 90 T-bill is.

Assuming you are offering this account to consumers, look at Regulation DD, Appendix A, Section 1.C. for information on how to properly calculate the APY for this account. It is only that properly calculated APY that can be used in your disclosure and advertising for the account (per definition of APY in Reg DD).

Flyboy is correct - this will be treated like a stepped rate account. The only APY you can advertise will be a blended rate.