We calculate interest using the daily balance method; which is described in the account disclosure. However, the account statement includes a figure identified as average daily balance. As best I can tell, such is included to allow the customer an opportunity to recalculate the APY (even when daily balance method used). Is there a way to calculate APY w/out factoring in the Average Daily Balance? If not, is inclusion of average daily balance okay even though we use the daily balance method?

There is neither a requirement or prohibition regarding the inclusion of this type of balance information on the statement.