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Decimal Places for Rate on Statement (Reg DD)

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We are a core processor for several banks. One of our banks has a rate on a time deposit that goes out to three decimal points 2.345. We show that rate in our online system the bank sees, but when we do the calculation and render the statement it shows as 2.35 on the statement to the customer. The customer wants to see the full rate on the statement. Is there any requirement addressing the number of decimal places for a rate on a statement?

From the regulation's general disclosure requirements:

(f) Rounding and accuracy rules for rates and yields. (1) Rounding. The annual percentage yield, the annual percentage yield earned, and the interest rate shall be rounded to the nearest one-hundredth of one percentage point (.01%) and expressed to two decimal places. For account disclosures, the interest rate may be expressed to more than two decimal places.

The reference to "account disclosures" is talking about the initial disclosures, not the periodic statement.

My answer would be "no." (I would be thinking "This is a ridiculous request, particularly in this interest rate environment" but hopefully the only word that would come out of my mouth would just be "No.")

First published on 03/25/2018

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