Advertising a 5% CD on "Flashing Signs"

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Question:

I am basically a lending side compliance person but I am having to assume additional responsibilities including approving ads...I have a bank that wants to advertise a 5% CD on "flashing signs" and put them in front of the branches. In reading about deposit advertising, am I correct to tell my marketing folks that the ad would:Need the FDIC logo, if they want to use the 5% then they would have to state an APY and also spell out APY at least once on the sign?

Answer:

The sign qualifies as an "outdoor medium." Accordingly, a lot of normal ad requirements are dropped, but you are left with:

Member FDIC or the logo unless it's part of the sign framework
Assuming the bank wants to tout the yield, it must be shown to two decimal places, i.e., "5.00%," and "Annual Percentage Yield" must be spelled out
The minimum balance required to obtain the rate advertised
The time requirement for the CD.

I'm not certain the "flashing sign" will accommodate all of this information.

First published on BankersOnline.com 1/23/06