Noncompounding CDs, APR, & APY

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Question:

There was a revision to Reg DD that stated "If a CD has a term of longer than one year and you do not compound, the APY may be stated the same as the rate". Where can I find that to show to a customer?

Answer:

230.4 states in the commentary that "If the annual percentage yield is the same as the interest rate, institutions may disclose a single figure but must use both terms." This is also guidance under part E of Appendix A.

First published on BankersOnline.com 2/05/01