Answer:
The APYs in advertisements and in rate sheets (if provided to consumers) must be accurate. If rates can change, the advertised APY should be described as accurate as of a recent date. In comment 8(c)(2) (Time annual percentage yield is offered), the following additional guidance is offered:
1. Specified date. If an advertisement discloses an annual percentage yield as of a specified date, that date must be recent in relation to the publication or broadcast frequency of the media used, taking into account the particular circumstances or production deadlines involved. For example, the printing date of a brochure printed once for a deposit account promotion that will be in effect for six months would be considered “recent,” even though rates change during the six-month period. Rates published in a daily newspaper or on television must reflect rates offered shortly before (or on) the date the rates are published or broadcast.
2. Reference to date of publication. An advertisement may refer to the annual percentage yield as being accurate as of the date of publication, if the date is on the publication itself. For instance, an advertisement in a periodical may state that a rate is “current through the date of this issue,” if the periodical shows the date.
In an ad, the APY must be rounded to the nearest one-hundredth of one percentage point, and expressed to two decimal placed. Accuracy must be within one twentieth (.05%) above or below the actual APY.
The rounding requirement for very low interest rates or very small amounts can result in slight differences.
print
share