Circular
Regulation DD - Truth In Savings
August 13, 1998
Circular No. 11080

Interim Rule on Disclosure of APY Finalized

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has made final an interim rule amending Regulation DD, Truth in Savings, regarding the disclosure of the annual percentage yield (APY). The rule - which was adopted as an interim rule effective January 18, 1995, and which will continue as a final amendment effective August 28, 1998 -- permits institutions to disclose an APY equal to the contract interest rate for certain time accounts. The rule applies only to time accounts with maturities greater than one year that do not compound but that require interest distributions at least annually.

A copy of the amendment, as published in the Federal Register of July 30 is available as a file (pdf - 35kb). Questions on this matter may be directed, at this Bank, to Janice A. Oser, Examining Officer, Compliance Examinations Department.