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#81926 - 05/21/03 10:39 PM APY for IRA Savings Accounts
LSS Offline
New Poster
Joined: May 2003
Posts: 3
The IRA savings accounts have statements generated quarterly, but I am told they are only sent annually. On both the quarterly and annual statements, the APY is not disclosed. It does state the interest earned during that time period and the interest rate. Is this in violation since the statements are only sent annually?

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Operations Compliance
#81927 - 05/22/03 07:14 PM Re: APY for IRA Savings Accounts
StevenD Offline
Gold Star
StevenD
Joined: Nov 2000
Posts: 489
KY
From Regulation DD:

q) Periodic statement means a statement setting forth information about an account (other than a time account or passbook savings account) that is provided to a consumer on a regular basis four or more times a year.

It sounds like the statement you mention is only "provided" once a year so it is not a periodic statement.

If it is not a periodic statement, it doesn't have to contain all of the disclosures required for a periodic statement.

The only question is, if they are produced quarterly, why are they only sent annually? And are they 'all' only sent annually?
_________________________
Opinion expressed are my own and not necessarily those of my employer.

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#81928 - 05/23/03 04:23 PM Re: APY for IRA Savings Accounts
1111 Offline
Platinum Poster
1111
Joined: Jan 2003
Posts: 580
It's up to you how often IRA periodic statements are forwarded to customers, based on your account agreement and disclosure. Once that is determined, the purpose of a statement, among others, is it disclosure the current APY and interest earned amount, activity, etc.

I cannot imagine a scenario in which a "statement" is forwarded within the required disclosures.

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