Interest will be credited to your account [on a ____ basis/every (time period)]. For accounts with two or more interest rates applied in succeeding periods (where the rates are known at the time the account is opened), an institution shall assume each interest rate is in effect for the length of time provided for in the deposit contract. Discretionary penalties. 461), except credit unions defined in section 19(b)(1)(A)(iv). On (date), the minimum [daily balance/average daily balance] required to avoid imposition of a fee will increase to $____. Duplicate disclosures. B1 Model Clauses for Account Disclosures, B1(h) Disclosures Relating to Time Accounts. Transfer fees, if different dollar amounts are imposed, such as $.50 for deposits and $1.00 for withdrawals. The institution must disclose separate totals for the statement period and for the calendar year-to-date. Categories of transactions. Sole proprietors. Institutions need not highlight terms that changed since the last account disclosures were provided. (c) Notice before maturity for time accounts longer than one year that do not renew automatically. 4. It includes time, demand, savings, and negotiable order of withdrawal accounts. Generally, the regulatory requirement that disclosures be in writing and in a form the . Except as provided in paragraph (a)(1)(ii) of this section, if the consumer is not present at the institution when the account is opened or the service is provided and has not already received the disclosures, the institution shall mail or deliver the disclosures no later than 10 business days after the account is opened or the service is provided, whichever is earlier. Except as provided in paragraph (e) of this section, if the annual percentage yield is stated in an advertisement, the advertisement shall state the following information, to the extent applicable, clearly and conspicuously: (1) Variable rates. Specified date. However, we are providing combined statements for a subset of our clients that that includes information on CDs and IRAs and other account types. The disclosures under 1030.11(a) must be included on periodic statements provided by an institution starting the first statement period that begins after January 1, 2010. Following the maturity of nonrollover time accounts. ii. A depository institution would be required to include the advertising disclosures in 1030.11(b)(1) of this part if the institution: i. Other fees. Edge Act and Agreement corporations, and agencies of foreign institutions, are not depository institutions for purposes of this part. The account has a balance of $2,000 September 1 through September 15 and a balance of $1,000 for the remaining 15 days of September. (3) Exception for ATM screens and telephone response machines. An indoor sign advertising an annual percentage yield is not misleading or inaccurate when: i. Fees required to be disclosed under 1030.4(b)(4) of this part that were debited to the account during the statement period. iii. Institutions that use the daily balance method to accrue interest and that issue periodic statements more often than the period for which interest is compounded shall use the following special formula: The following definition applies for use in this formula (all other terms are defined under part II): Compounding is the number of days in each compounding period. Fees for special services, such as stop-payment fees, fees for balance inquiries or verification of deposits, fees associated with checks returned unpaid, and fees for regularly sending to consumers checks that otherwise would be held by the institution. Appendix B to Part 1030Model Clauses and Sample Forms. Section 1030.9Enforcement and Record Retention. If a consumer who is not present at the institution uses electronic means (for example, an Internet Web site) to open an account or request a service, the disclosures required under paragraph (a)(1) of this section must be provided before the account is opened or the service is provided. Regulation DD helps consumers comparison-shop for deposit accounts. First tier. ii. Institutions may not require that consumers maintain both a minimum daily balance and a minimum average daily balance to earn interest, such as by requiring consumers to maintain a $500 daily balance and a prescribed average daily balance (whether higher or lower). (t) Tiered-rate account means an account that has two or more interest rates that are applicable to specified balance levels. Instead, the advertisement may: i. 1. 1. (d) Effect on state laws. For example: i. order of withdrawal accounts. We may change the interest rate on your account [every (time period)/at any time]. the hierarchy of the document. The interest rates and the period of time each will be in effect also must be provided. (b) Advertising disclosures for overdraft services . The form does not contain a separate disclosure of the minimum balance required to obtain the annual percentage yield; the tiered-rate disclosure provides that information. If the account does not have a limit on the maximum amount that can be deposited, the institution may assume any amount. FAR). 4002(d)(1), 4003, 4004, 4008(a)) that are codified within Regulation CC (12 CFR part 229). Regulation DD disclosures may be provided to the consumer in electronic form, subject to compliance . For $15,000.01, interest would be figured on $2,500 at 5.25% interest rate, plus interest on $12,500 at 5.50% interest rate, plus interest on $.01 at 5.75% interest rate. If our ad says, when you open a new checking account we will give you $150 ($75 for a direct deposit minimum monthly deposit amount of $200 and $75 for completing a signature based transaction of $50 or more) is this considered a bonus and does it require a TISA disclosure? You may not make [deposits into/withdrawals from] your account until the maturity date. Format. 3. exchange for opening, maintaining, renewing, or increasing an account balance. For $2,500.01, interest would be figured on $2,500 at 5.25% interest rate plus interest on $.01 at 5.50%. Callable time accounts. (h) Disclosures Relating to Time Accounts. An advertisement that states an interest rate for a stepped-rate account must state all the interest rates and the time period that each rate is in effect. Institutions must treat a negative account balance as zero to determine: i. 3. The minimum balance required to obtain the advertised annual percentage yield. vi. The frequency with which interest is compounded and credited. When this method is used to determine interest, only one annual percentage yield will apply to each tier. 1. Fees for travelers checks for account holders. The term does not include a natural person who holds an account for another in a professional capacity. Fees for electronic fund transfers and fees for other services, such as balance-inquiry or maintenance fees. iv. When the consumer sits down at the desk and begins the process? For example, institutions offering an account that is free of deposit or withdrawal fees could advertise that fact, as long as the advertisement does not mislead consumers by implying that the account is free and that no other fee (a monthly service fee, for example) may be charged. For example, if a consumer deposits $8,000, the institution pays 5.25% on $2,500 and 5.50% on $5,500 (the difference between $8,000 and the first tier cut-off of $2,500). Choosing an item from 1. The disclosures required by paragraph (a)(1) of this section must be provided for the statement period and for the calendar year-to-date; (3) Format requirements. (2) Accuracy. 1. Institutions may advertise accounts as free for consumers meeting conditions not related to deposit accounts, such as the consumer's age. The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. Tiered-rate accounts. (See appendix A, Part I, Paragraph C.). The expiration of one year in a promotion described in the account opening disclosures to waive $4.00 monthly service charges for one year.. Section 1030.11Additional Disclosures Regarding the Payment of Overdrafts. Some institutions' statement periods do not coincide with the calendar month. The average daily balance is determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in the period. iv. For example, if no interest is earned for a statement period, institutions need not state that fact. Subject to state or other law, an institution may choose not to pay accrued interest if consumers close an account prior to the date accrued interest is credited, as long as the institution has disclosed that fact. The institution also provides a periodic statement complying with this section for each account. In addition, the balance may, but need not, include funds that are held by the institution to satisfy a prior obligation of the consumer (for example, to cover a hold for an ATM or debit card transaction that has been authorized but for which the bank has not settled). Limitations required by Regulation D of the Board of Governors of the Federal Reserve System (12 CFR part 204) on the number of withdrawals permitted from money market deposit accounts by check to third parties each month. PDF Supporting Statement for the disclosure requirements in connection with 1. 2. (c) Annual percentage yield means a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period and calculated according to the rules in appendix A of this part. (1) General. For a tiered-rate account, it also provides the lower dollar amount of the tier corresponding to the advertised annual percentage yield. If the maturity is longer than one year, the institution shall provide account disclosures set forth in 1030.4(b) of this part for the new account, along with the date the existing account matures. 1. Regulation E interim statements. You will [be paid/receive] [$____/(description of item)] as a bonus [when you open the account/on (date) ____]. Quarterly statements and monthly compounding. Alternatively, an institution may disclose three interest and three annual percentage yield earned figures, one for each month in the quarter, as long as the institution states the number of days (or beginning and ending dates) in the interest period if different from the statement period. iii. For accounts with a stated maturity greater than one year that do not compound interest on an annual or more frequent basis, that require interest payouts at least annually, and that disclose an APY determined in accordance with section E of appendix A of this part, a statement that interest cannot remain on deposit and that payout of interest is mandatory. 1. The interest rate will never [exceed____% above/drop more than ____% below] the interest rate initially disclosed to you. Background and more details are available in the Periodic interest payments. Institutions comply with this paragraph if they disclose an interest rate and annual percentage yield accurate within the seven calendar days preceding the date they send the disclosures. 2. No notice under this section is required for: (i) Variable-rate changes. Your account will mature in (time period). (2) The variable interest rate that would have been in effect when the account is opened or advertised (but for the introductory rate) is in effect for the remainder of the year. (See 12 CFR 204.2(c)(1)(i).) This web site is designed for the current versions of Fees imposed when deposited items are returned are not included. Internet advertisements. ii. An advertisement that states an annual percentage yield for a given type of account (such as a time account for a specified term) need not state the annual percentage yield applicable to other time accounts offered by the institution or indicate that other maturity terms are available. Truth in Savings Act (Reg DD) | American Bankers Association (i) General. The interest rate will never be [less/more] than ____%; or. Free for limited time. We use the average daily balance method to calculate interest on your account.