Answer:
If your credit union pays a dividend rate of 3.928% on the first $15,000 and pays 0% on the portion of account balances over $15,000, the APY you disclose or advertise will be reflected in tiers, and the upper tier will have a range of APYs from 4.00% (I'll assume that APY is accurate, although I can't verify it), downward. Consult NCUA TISA regulations, App. A to Part 707, Part I - D (Tiered accounts), Tiering Method B.
If instead you pay dividends on the whole balance based on the balance in the account, an account with a balance in excess of $15,000 gets no dividend payment and the APY would be 0.00% for that tier. Consult the same section of App. A, but review Tiering Method A.
Incidentally, make sure you're expressing APYs to two decimal places: 4.00%, for example, rather than 4%.
First published on BankersOnline.com 6/20/11
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