Advertising APY to 2 decimal places?

Answered by:

Question:

Where in the regulations does it state that advertising an APY must be carried out to two decimal places?

Answer:

Answer by Dan Persfull:I would look to 203.3(f)(1) and (2). The only exception noted is for account disclosures and that is for disclosing greater than two decimal places. You may also want to look at Appendix A.

Answer:

Answer by John Burnett:The exception that Dan cites only applies to the interest rate. In your account disclosures, if you are going to be paying 5-3/8% interest on an account, you may disclose the interest rate as 5.375%, but the APY must always be disclosed to two decimal places.

First published on BankersOnline.com 12/06/10