If we wanted to promote a CD at 1.50% APY, but the actual APY on our system would be 1.51%, is there a way we could do this? Due to system calculation limitations we could not get the1.50% to work. They want to promote the even number of 1.50% to coincide with an anniversary.

I know there are tolerances in Reg. DD, but those are for errors, correct? Is there any way this could work? I wouldn't think a footnote with the actual APY would suffice, even if it is in the customer's benefit. Any thoughts would be appreciated. Thanks!

You've already given them the correct answer: "The tolerance is for mistakes."

If they think it will make a difference, they can run the special next year when it's the 151st anniversary of whatever.

Thanks Ken, that's what I thought. I appreciate it!

You could do it using a simple (non-compounding) interest rate of 1.50% on a one-year CD, with interest only at maturity.