Truth-In-Savings requires certain disclosures on periodic statements. One of the disclosures required on dividend-bearing accounts is the “annual percentage yield earned (APYE)”. The APYE is an annualized rate that reflects the relationship between the amount of dividends actually paid to the member’s account during the period and the average daily balance in the account for that period. *Note - this calculation uses the member’s average daily balance for the period,   More...

The APY calculates the annualized rate for a savings product and adjusts for compounding. It assumes a balance of $1,000 for a 12-month term. It also assumes no withdrawals are made during the 12 month term. Truth-In-Savings (TIS) regulations require this disclosure to help people compare savings products, apples to apples, across multiple financial institutions. The APYE calculation is also required by TIS, and can be reported to members via their statement. It is the annualized rate that ta  More...

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No. Term share deposits do not fall under the APYE member statement disclosure requirements Annual Percentage Yield TIS

The APYE calculation depends on the date of the last statement run (both monthly and quarterly). Because you are a new client, that data is not present. The results of the APYE calculation are then extremely skewed. We feel is it prudent not to display the disclosure statement with invalid information. You are still in compliance for this one statement run given the circumstance of changing to a new data processor. APY mailing TIS Truth-In-Savings dividends

Because there is no regulation to require APY to be displayed, CU*BASE has no option to do so. Since shares and certificates can have more than one rate during a statement period, the APY displayed at the end of the period would be inaccurate. However the Truth-In-Savings regulation does require an APYE disclosure statement on shares, this automatically displays when a dividend is posted. Certificates are not part of this requirement.

The Truth-In-Savings Regulation governs the APYE disclosure. Currently only Share/Draft accounts are included in the APYE disclosure requirement. Certificates are not included.