CD Rate Oral Inquiries - Quote APY First?

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Question:

During a recent audit it was noted that for CD rate oral inquiries some staff members were disclosing the interest rate before the annual percentage yield. I can't find anywhere in Reg DD that says you must quote the APY first. Is there something I am missing?

Answer:

It is not a requirement that the APY be given before the rate. I have generally trained as a best practice to give the APY first, that way we're sure it's given. This is probably an example of something that was taught as a best practice and has been construed to be a requirement.

First published on BankersOnline.com 4/28/08