We're considering a Christmas Club account where the customer would pay 51 payments and the bank would make the final payment on the account (if the other 51 pmts were made). I'm trying to figure out how to disclose an APY...can someone help me please???

Thanks,

The payment is not guaranteed; i.e. it is not interest and does not generate an APY. If it's more than $10, it's a bonus:

(f) Bonus

1. Examples. Bonuses include items of value, other than interest, offered as incentives to consumers, such as an offer to pay the final installment deposit for a holiday club account. Items that are not a bonus include discount coupons for goods or services at restaurants or stores.

Thanks Ken,

I was actually thinking that might be the case. Now, how would you suggest we disclose something like that...just as it is? Ex: The bank will make the final (52nd) payment when all 51 payments are made by the consumer? '

Thank again!