PART 1030—TRUTH IN SAVINGS (REGULATION DD) Authority: 12 U.S.C. 4302-4304, 4308, 5512, 5581. Source: 76 FR 79278, Dec. 21, 2011, unless otherwise noted. § 1030.1 Authority, purpose, coverage, and effect on state laws. (a) Authority. et seq., et seq. (b) Purpose. (c) Coverage. (d) Effect on state laws. (e) Relationship to Regulation CC. [76 FR 79278, Dec. 21, 2011, as amended at 84 FR 31698, July 3, 2019] § 1030.2 Definitions. For purposes of this part, the following definitions apply: (a) Account (b) Advertisement (1) The availability or terms of, or a deposit in, a new account; and (2) For purposes of §§ 1030.8(a) and 1030.11 of this part, the terms of, or a deposit in, a new or existing account. (c) Annual percentage yield (d) Average daily balance method (e) Bureau (f) Bonus (g) Business day (h) Consumer (i) Daily balance method (j) Depository institution institution (k) Deposit broker (l) Fixed-rate account (m) Grace period (n) Interest (o) Interest rate (p) Passbook savings account (q) Periodic statement (r) State (s) Stepped-rate account (t) Tiered-rate account (u) Time account (v) Variable-rate account § 1030.3 General disclosure requirements. (a) Form. et seq. (b) General. (c) Relation to Regulation E (12 CFR Part 1005). et seq. (d) Multiple consumers. (e) Oral response to inquiries. (f) Rounding and accuracy rules for rates and yields Rounding. (2) Accuracy. § 1030.4 Account disclosures. (a) Delivery of account disclosures Account opening General. (ii) Timing of electronic disclosures. (2) Requests. (ii) In providing disclosures upon request, the institution may: (A) Specify an interest rate and annual percentage yield that were offered within the most recent seven calendar days; state that the rate and yield are accurate as of an identified date; and provide a telephone number consumers may call to obtain current rate information. (B) State the maturity of a time account as a term rather than a date. (b) Content of account disclosures. (1) Rate information Annual percentage yield and interest rate. (ii) Variable rates. (A) The fact that the interest rate and annual percentage yield may change; (B) How the interest rate is determined; (C) The frequency with which the interest rate may change; and (D) Any limitation on the amount the interest rate may change. (2) Compounding and crediting Frequency. (ii) Effect of closing an account. (3) Balance information Minimum balance requirements. ( 1 ( 2 ( 3 (B) Except for the balance to open the account, the disclosure shall state how the balance is determined for these purposes. (ii) Balance computation method. (iii) When interest begins to accrue. (4) Fees. (5) Transaction limitations. (6) Features of time accounts. (i) Time requirements. (ii) Early withdrawal penalties. (iii) Withdrawal of interest prior to maturity. (iv) Renewal policies. (7) Bonuses. (c) Notice to existing account holders Notice of availability of disclosures. (2) Alternative to notice. § 1030.5 Subsequent disclosures. (a) Change in terms Advance notice required. (2) No notice required. (i) Variable-rate changes. (ii) Check printing fees. (iii) Short-term time accounts. (b) Notice before maturity for time accounts longer than one month that renew automatically. (1) Maturities of longer than one year. (2) Maturities of one year or less but longer than one month. (i) Provide disclosures as set forth in paragraph (b)(1) of this section; or (ii) Disclose to the consumer: (A) The date the existing account matures and the new maturity date if the account is renewed; (B) The interest rate and the annual percentage yield for the new account if they are known (or that those rates have not yet been determined, the date when they will be determined, and a telephone number the consumer may call to obtain the interest rate and the annual percentage yield that will be paid for the new account); and (C) Any difference in the terms of the new account as compared to the terms required to be disclosed under § 1030.4(b) of this part for the existing account. (c) Notice before maturity for time accounts longer than one year that do not renew automatically. § 1030.6 Periodic statement disclosures. (a) General rule. (1) Annual percentage yield earned. (2) Amount of interest. (3) Fees imposed. (4) Length of period. (5) Aggregate fee disclosure. (b) Special rule for average daily balance method. § 1030.7 Payment of interest. (a) Permissible methods Balance on which interest is calculated. 1/365 1/366 (2) Determination of minimum balance to earn interest. (b) Compounding and crediting policies. (c) Date interest begins to accrue. [76 FR 79278, Dec. 21, 2011, as amended at 84 FR 31698, July 3, 2019] § 1030.8 Advertising. (a) Misleading or inaccurate advertisements. (1) Be misleading or inaccurate or misrepresent a depository institution's deposit contract; or (2) Refer to or describe an account as “free” or “no cost” (or contain a similar term) if any maintenance or activity fee may be imposed on the account. The word “profit” shall not be used in referring to interest paid on an account. (b) Permissible rates. (c) When additional disclosures are required. (1) Variable rates. (2) Time annual percentage yield is offered. (3) Minimum balance. (4) Minimum opening deposit. (5) Effect of fees. (6) Features of time accounts. (i) Time requirements. (ii) Early withdrawal penalties: (iii) Required interest payouts. (d) Bonuses. (1) The “annual percentage yield,” using that term; (2) The time requirement to obtain the bonus; (3) The minimum balance required to obtain the bonus; (4) The minimum balance required to open the account, if it is greater than the minimum balance necessary to obtain the bonus; and (5) When the bonus will be provided. (e) Exemption for certain advertisements Certain media. (i) Broadcast or electronic media, such as television or radio; (ii) Outdoor media, such as billboards; or (iii) Telephone response machines. (2) Indoor signs. (ii) If a sign exempt by paragraph (e)(2) of this section states a rate of return, it shall: (A) State the rate as an “annual percentage yield,” using that term or the term “APY.” The sign shall not state any other rate, except that the interest rate may be stated in conjunction with the annual percentage yield to which it relates. (B) Contain a statement advising consumers to contact an employee for further information about applicable fees and terms. (f) Additional disclosures in connection with the payment of overdrafts. § 1030.9 Enforcement and record retention. (a) Administrative enforcement. (b) [Reserved] (c) Record retention. § 1030.10 [Reserved] § 1030.11 Additional disclosure requirements for overdraft services. (a) Disclosure of total fees on periodic statements General. (i) The total dollar amount for all fees or charges imposed on the account for paying checks or other items when there are insufficient or unavailable funds and the account becomes overdrawn, using the term “Total Overdraft Fees;” and (ii) The total dollar amount for all fees or charges imposed on the account for returning items unpaid. (2) Totals required. (3) Format requirements. (b) Advertising disclosures for overdraft services Disclosures. (i) The fee or fees for the payment of each overdraft; (ii) The categories of transactions for which a fee for paying an overdraft may be imposed; (iii) The time period by which the consumer must repay or cover any overdraft; and (iv) The circumstances under which the institution will not pay an overdraft. (2) Communications about the payment of overdrafts not subject to additional advertising disclosures. (i) An advertisement promoting a service where the institution's payment of overdrafts will be agreed upon in writing and subject to Regulation Z (12 CFR part 1026); (ii) A communication by an institution about the payment of overdrafts in response to a consumer-initiated inquiry about deposit accounts or overdrafts. Providing information about the payment of overdrafts in response to a balance inquiry made through an automated system, such as a telephone response machine, ATM, or an institution's Internet site, is not a response to a consumer-initiated inquiry for purposes of this paragraph; (iii) An advertisement made through broadcast or electronic media, such as television or radio; (iv) An advertisement made on outdoor media, such as billboards; (v) An ATM receipt; (vi) An in-person discussion with a consumer; (vii) Disclosures required by federal or other applicable law; (viii) Information included on a periodic statement or a notice informing a consumer about a specific overdrawn item or the amount the account is overdrawn; (ix) A term in a deposit account agreement discussing the institution's right to pay overdrafts; (x) A notice provided to a consumer, such as at an ATM, that completing a requested transaction may trigger a fee for overdrawing an account, or a general notice that items overdrawing an account may trigger a fee; (xi) Informational or educational materials concerning the payment of overdrafts if the materials do not specifically describe the institution's overdraft service; or (xii) An opt-out or opt-in notice regarding the institution's payment of overdrafts or provision of discretionary overdraft services. (3) Exception for ATM screens and telephone response machines. (4) Exception for indoor signs. (c) Disclosure of account balances. Appendix A to Part 1030—Annual Percentage Yield Calculation The annual percentage yield measures the total amount of interest paid on an account based on the interest rate and the frequency of compounding. The annual percentage yield reflects only interest and does not include the value of any bonus (or other consideration worth $10 or less) that may be provided to the consumer to open, maintain, increase or renew an account. Interest or other earnings are not to be included in the annual percentage yield if such amounts are determined by circumstances that may or may not occur in the future. The annual percentage yield is expressed as an annualized rate, based on a 365-day year. Institutions may calculate the annual percentage yield based on a 365-day or a 366-day year in a leap year. Part I of this appendix discusses the annual percentage yield calculations for account disclosures and advertisements, while part II discusses annual percentage yield earned calculations for periodic statements. Part I. Annual Percentage Yield for Account Disclosures and Advertising Purposes In general, the annual percentage yield for account disclosures under §§ 1030.4 and 1030.5 and for advertising under § 1030.8 is an annualized rate that reflects the relationship between the amount of interest that would be earned by the consumer for the term of the account and the amount of principal used to calculate that interest. Special rules apply to accounts with tiered and stepped interest rates, and to certain time accounts with a stated maturity greater than one year. A. General Rules Except as provided in part I.E. of this appendix, the annual percentage yield shall be calculated by the formula shown below. Institutions shall calculate the annual percentage yield based on the actual number of days in the term of the account. For accounts without a stated maturity date (such as a typical savings or transaction account), the calculation shall be based on an assumed term of 365 days. In determining the total interest figure to be used in the formula, institutions shall assume that all principal and interest remain on deposit for the entire term and that no other transactions (deposits or withdrawals) occur during the term. This assumption shall not be used if an institution requires, as a condition of the account, that consumers withdraw interest during the term. In such a case, the interest (and annual percentage yield calculation) shall reflect that requirement. For time accounts that are offered in multiples of months, institutions may base the number of days on either the actual number of days during the applicable period, or the number of days that would occur for any actual sequence of that many calendar months. If institutions choose to use the latter rule, they must use the same number of days to calculate the dollar amount of interest earned on the account that is used in the annual percentage yield formula (where “Interest” is divided by “Principal”). The annual percentage yield is calculated by use of the following general formula (“APY” is used for convenience in the formulas): APY=100 [(1+Interest/Principal) (365/Days in term) “Principal” is the amount of funds assumed to have been deposited at the beginning of the account. “Interest” is the total dollar amount of interest earned on the Principal for the term of the account. “Days in term” is the actual number of days in the term of the account. When the “days in term” is 365 (that is, where the stated maturity is 365 days or where the account does not have a stated maturity), the annual percentage yield can be calculated by use of the following simple formula: APY=100 (Interest/Principal) Examples: (1) If an institution pays $61.68 in interest for a 365-day year on $1,000 deposited into a NOW account, using the general formula above, the annual percentage yield is 6.17%: APY=100[(1+61.68/1,000) (365/365) APY=6.17% Or, using the simple formula above (since, as an account without a stated term, the term is deemed to be 365 days): APY=100(61.68/1,000) APY=6.17% (2) If an institution pays $30.37 in interest on a $1,000 six-month certificate of deposit (where the six-month period used by the institution contains 182 days), using the general formula above, the annual percentage yield is 6.18%: APY=100[(1+30.37/1,000) (365/182) APY=6.18% B. Stepped-Rate Accounts (Different Rates Apply in Succeeding Periods) For accounts with two or more interest rates applied in succeeding periods (where the rates are known at the time the account is opened), an institution shall assume each interest rate is in effect for the length of time provided for in the deposit contract. Examples: (1) If an institution offers a $1,000 6-month certificate of deposit on which it pays a 5% interest rate, compounded daily, for the first three months (which contain 91 days), and a 5.5% interest rate, compounded daily, for the next three months (which contain 92 days), the total interest for six months is $26.68 and, using the general formula above, the annual percentage yield is 5.39%: APY=100[(1+26.68/1,000) (365/183) APY=5.39% (2) If an institution offers a $1,000 two-year certificate of deposit on which it pays a 6% interest rate, compounded daily, for the first year, and a 6.5% interest rate, compounded daily, for the next year, the total interest for two years is $133.13, and, using the general formula above, the annual percentage yield is 6.45%: APY=100[(1+133.13/1,000) (365/730) APY=6.45% C. Variable-Rate Accounts For variable-rate accounts without an introductory premium or discounted rate, an institution must base the calculation only on the initial interest rate in effect when the account is opened (or advertised), and assume that this rate will not change during the year. Variable-rate accounts with an introductory premium (or discount) rate must be calculated like a stepped-rate account. Thus, an institution shall assume that: (1) The introductory interest rate is in effect for the length of time provided for in the deposit contract; and (2) The variable interest rate that would have been in effect when the account is opened or advertised (but for the introductory rate) is in effect for the remainder of the year. If the variable rate is tied to an index, the index-based rate in effect at the time of disclosure must be used for the remainder of the year. If the rate is not tied to an index, the rate in effect for existing consumers holding the same account (who are not receiving the introductory interest rate) must be used for the remainder of the year. For example, if an institution offers an account on which it pays a 7% interest rate, compounded daily, for the first three months (which, for example, contain 91 days), while the variable interest rate that would have been in effect when the account was opened was 5%, the total interest for a 365-day year for a $1,000 deposit is $56.52 (based on 91 days at 7% followed by 274 days at 5%). Using the simple formula, the annual percentage yield is 5.65%: APY=100(56.52/1,000) APY=5.65% D. Tiered-Rate Accounts (Different Rates Apply to Specified Balance Levels) For accounts in which two or more interest rates paid on the account are applicable to specified balance levels, the institution must calculate the annual percentage yield in accordance with the method described below that it uses to calculate interest. In all cases, an annual percentage yield (or a range of annual percentage yields, if appropriate) must be disclosed for each balance tier. For purposes of the examples discussed below, assume the following: Interest rate Deposit balance required to earn rate 5.25 Up to but not exceeding $2,500. 5.50 Above $2,500 but not exceeding $15,000. 5.75 Above $15,000. Tiering Method A. When this method is used to determine interest, only one annual percentage yield will apply to each tier. Within each tier, the annual percentage yield will not vary with the amount of principal assumed to have been deposited. For the interest rates and deposit balances assumed above, the institution will state three annual percentage yields—one corresponding to each balance tier. Calculation of each annual percentage yield is similar for this type of account as for accounts with a single interest rate. Thus, the calculation is based on the total amount of interest that would be received by the consumer for each tier of the account for a year and the principal assumed to have been deposited to earn that amount of interest. First tier. APY=100[(1+53.90/1,000) (365/365) APY=5.39% Using the simple formula: APY=100(53.90/1,000) APY=5.39% Second tier. APY=100(452.29/8,000) APY=5.65% Third tier. APY=100(1,183.61/20,000) APY=5.92% Tiering Method B. The institution that computes interest in this manner must provide a range that shows the lowest and the highest annual percentage yields for each tier (other than for the first tier, which, like the tiers in Method A, has the same annual percentage yield throughout). The low figure for an annual percentage yield range is calculated based on the total amount of interest earned for a year assuming the minimum principal required to earn the interest rate for that tier. The high figure for an annual percentage yield range is based on the amount of interest the institution would pay on the highest principal that could be deposited to earn that same interest rate. If the account does not have a limit on the maximum amount that can be deposited, the institution may assume any amount. For the tiering structure assumed above, the institution would state a total of five annual percentage yields—one figure for the first tier and two figures stated as a range for the other two tiers. First tier. APY=100(53.90/1,000) APY=5.39% Second tier. APY=100(134.75/2,500) APY=5.39% For $15,000, interest is figured on $2,500 at 5.25% interest rate plus interest on $12,500 at 5.50% interest rate. For the high end of the second tier, the annual percentage yield, using the simple formula, is 5.61%: APY=100(841.45/15,000) APY=5.61% Thus, the annual percentage yield range for the second tier is 5.39% to 5.61%. Third tier. APY=100 (841.45/15,000) APY=5.61% Since the institution does not limit the account balance, it may assume any maximum amount for the purposes of computing the annual percentage yield for the high end of the third tier. For an assumed maximum balance amount of $100,000, interest would be figured on $2,500 at 5.25% interest rate, plus interest on $12,500 at 5.50% interest rate, plus interest on $85,000 at 5.75% interest rate. For the high end of the third tier, therefore, the annual percentage yield, using the simple formula, is 5.87%. APY=100 (5,871.79/100,000) APY=5.87% Thus, the annual percentage yield range that would be stated for the third tier is 5.61% to 5.87%. If the assumed maximum balance amount is $1,000,000 instead of $100,000, the institution would use $985,000 rather than $85,000 in the last calculation. In that case, for the high end of the third tier the annual percentage yield, using the simple formula, is 5.91%: APY=100 (59134.22/1,000,000) APY=5.91% Thus, the annual percentage yield range that would be stated for the third tier is 5.61% to 5.91%. E. Time Accounts With a Stated Maturity Greater Than One Year That Pay Interest at Least Annually 1. For time accounts with a stated maturity greater than one year that do not compound interest on an annual or more frequent basis, and that require the consumer to withdraw interest at least annually, the annual percentage yield may be disclosed as equal to the interest rate. Example (1) If an institution offers a $1,000 two-year certificate of deposit that does not compound and that pays out interest semi-annually by check or transfer at a 6.00% interest rate, the annual percentage yield may be disclosed as 6.00%. (2) For time accounts covered by this paragraph that are also stepped-rate accounts, the annual percentage yield may be disclosed as equal to the composite interest rate. Example (1) If an institution offers a $1,000 three-year certificate of deposit that does not compound and that pays out interest annually by check or transfer at a 5.00% interest rate for the first year, 6.00% interest rate for the second year, and 7.00% interest rate for the third year, the institution may compute the composite interest rate and APY as follows: (a) Multiply each interest rate by the number of days it will be in effect; (b) Add these figures together; and (c) Divide by the total number of days in the term. (2) Applied to the example, the products of the interest rates and days the rates are in effect are (5.00%×365 days) 1825, (6.00%×365 days) 2190, and (7.00%×365 days) 2555, respectively. The sum of these products, 6570, is divided by 1095, the total number of days in the term. The composite interest rate and APY are both 6.00%. Part II. Annual Percentage Yield Earned for Periodic Statements The annual percentage yield earned for periodic statements under § 1030.6(a) is an annualized rate that reflects the relationship between the amount of interest actually earned on the consumer's account during the statement period and the average daily balance in the account for the statement period. Pursuant to § 1030.6(b), however, if an institution uses the average daily balance method and calculates interest for a period other than the statement period, the annual percentage yield earned shall reflect the relationship between the amount of interest earned and the average daily balance in the account for that other period. The annual percentage yield earned shall be calculated by using the following formulas (“APY Earned” is used for convenience in the formulas): A. General Formula APY Earned=100 [(1+Interest earned/Balance) (365/Days in period) “Balance” is the average daily balance in the account for the period. “Interest earned” is the actual amount of interest earned on the account for the period. “Days in period” is the actual number of days for the period. Examples (1) Assume an institution calculates interest for the statement period (and uses either the daily balance or the average daily balance method), and the account has a balance of $1,500 for 15 days and a balance of $500 for the remaining 15 days of a 30-day statement period. The average daily balance for the period is $1,000. The interest earned (under either balance computation method) is $5.25 during the period. The annual percentage yield earned (using the formula above) is 6.58%: APY Earned=100 [(1+5.25/1,000) (365/30) APY Earned=6.58% (2) Assume an institution calculates interest on the average daily balance for the calendar month and provides periodic statements that cover the period from the 16th of one month to the 15th of the next month. The account has a balance of $2,000 September 1 through September 15 and a balance of $1,000 for the remaining 15 days of September. The average daily balance for the month of September is $1,500, which results in $6.50 in interest earned for the month. The annual percentage yield earned for the month of September would be shown on the periodic statement covering September 16 through October 15. The annual percentage yield earned (using the formula above) is 5.40%: APY Earned=100 [(6.50/1,500) (365/30) APY Earned=5.40% (3) Assume an institution calculates interest on the average daily balance for a quarter (for example, the calendar months of September through November), and provides monthly periodic statements covering calendar months. The account has a balance of $1,000 throughout the 30 days of September, a balance of $2,000 throughout the 31 days of October, and a balance of $3,000 throughout the 30 days of November. The average daily balance for the quarter is $2,000, which results in $21 in interest earned for the quarter. The annual percentage yield earned would be shown on the periodic statement for November. The annual percentage yield earned (using the formula above) is 4.28%: APY Earned=100 [(1+21/2,000) (365/91) APY Earned=4.28% B. Special Formula for Use Where Periodic Statement Is Sent More Often Than the Period for Which Interest Is Compounded Institutions that use the daily balance method to accrue interest and that issue periodic statements more often than the period for which interest is compounded shall use the following special formula: The following definition applies for use in this formula (all other terms are defined under part II): “Compounding” is the number of days in each compounding period. Assume an institution calculates interest for the statement period using the daily balance method, pays a 5.00% interest rate, compounded annually, and provides periodic statements for each monthly cycle. The account has a daily balance of $1,000 for a 30-day statement period. The interest earned is $4.11 for the period, and the annual percentage yield earned (using the special formula above) is 5.00%: APY Earned=5.00% [84 FR 31698, July 3, 2019] Appendix B to Part 1030—Model Clauses and Sample Forms Table of Contents B-1—Model Clauses for Account Disclosures (Section 1030.4(b)) B-2—Model Clauses for Change in Terms (Section 1030.5(a)) B-3—Model Clauses for Pre-Maturity Notices for Time Accounts (Section 1030.5(b)(2) and 1030.5(d)) B-4—Sample Form (Multiple Accounts) B-5—Sample Form (Now Account) B-6—Sample Form (Tiered Rate Money Market Account) B-7—Sample Form (Certificate of Deposit) B-8—Sample Form (Certificate of Deposit Advertisement) B-9—Sample Form (Money Market Account Advertisement) B-10—Sample Form (Aggregate Overdraft and Returned Item Fees) B-1—Model Clauses for Account Disclosures (a) Rate Information (i) Fixed-Rate Accounts The interest rate on your account is ____% with an annual percentage yield of ____%. You will be paid this rate [for (time period)/until (date)/for at least 30 calendar days]. (ii) Variable-Rate Accounts The interest rate on your account is ____% with an annual percentage yield of ____%. Your interest rate and annual percentage yield may change. Determination of Rate The interest rate on your account is based on (name of index) [plus/minus a margin of ____]; or At our discretion, we may change the interest rate on your account. Frequency of Rate Changes We may change the interest rate on your account [every (time period)/at any time]. Limitations on Rate Changes The interest rate for your account will never change by more than ____% each (time period). The interest rate will never be [less/more] than ____%; or The interest rate will never [exceed____% above/drop more than ____% below] the interest rate initially disclosed to you. (iii) Stepped-Rate Accounts The initial interest rate for your account is ____%. You will be paid this rate [for (time period)/until (date)]. After that time, the interest rate for your account will be ____%, and you will be paid this rate [for (time period)/until (date)]. The annual percentage yield for your account is ____%. (iv) Tiered-Rate Accounts Tiering Method A • If your [daily balance/average daily balance] is $____ or more, the interest rate paid on the entire balance in your account will be ____% with an annual percentage yield of __%. • If your [daily balance/average daily balance] is more than $____, but less than $____, the interest rate paid on the entire balance in your account will be ____% with an annual percentage yield of ____%. • If your [daily balance/average daily balance] is $____ or less, the interest rate paid on the entire balance will be ____% with an annual percentage yield of ____%. Tiering Method B • An interest rate of ____% will be paid only for that portion of your [daily balance/average daily balance] that is greater than $____. The annual percentage yield for this tier will range from ____% to ____%, depending on the balance in the account. • An interest rate of ____% will be paid only for that portion of your [daily balance/average daily balance] that is greater than $____. The annual percentage yield for this tier will range from ____% to ____%, depending on the balance in the account. • If your [daily balance/average daily balance] is $____ or less, the interest rate paid on the entire balance will be ____% with an annual percentage yield of ____%. (b) Compounding and Crediting (i) Frequency Interest will be compounded [on a ____ basis/every (time period)]. Interest will be credited to your account [on a ____ basis/every (time period)]. (ii) Effect of Closing an Account If you close your account before interest is credited, you will not receive the accrued interest. (c) Minimum Balance Requirements (i) To Open the Account You must deposit $____ to open this account. (ii) To Avoid Imposition of Fees A minimum balance fee of $____ will be imposed every (time period) if the balance in the account falls below $____ any day of the (time period). A minimum balance fee of $____ will be imposed every (time period) if the average daily balance for the (time period) falls below $____. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. (iii) To Obtain the Annual Percentage Yield Disclosed You must maintain a minimum balance of $____ in the account each day to obtain the disclosed annual percentage yield. You must maintain a minimum average daily balance of $____ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. (d) Balance Computation Method (i) Daily Balance Method We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. (ii) Average Daily Balance Method We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. (e) Accrual of Interest on Noncash Deposits Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks); or Interest begins to accrue on the business day you deposit noncash items (for example, checks). (f) Fees The following fees may be assessed against your account: ____$____ ____$____ ____$____ ____( conditions for imposing fee ____% of ____. (g) Transaction Limitations The minimum amount you may [withdraw/write a check for] is $____. You may make ____ [deposits into/withdrawals from] your account each (time period). You may not make [deposits into/withdrawals from] your account until the maturity date. (h) Disclosures Relating to Time Accounts (i) Time Requirements Your account will mature on (date). Your account will mature in (time period). (ii) Early Withdrawal Penalties We [will/may] impose a penalty if you withdraw [any/all] of the [deposited funds/principal] before the maturity date. The fee imposed will equal ____ days/week[s]/month[s] of interest; or We [will/may] impose a penalty of $____ if you withdraw [any/all] of the [deposited funds/principal] before the maturity date. If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be ____% with an annual percentage yield of ____%. (iii) Withdrawal of Interest Prior to Maturity The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. (iv) Renewal Policies (1) Automatically Renewable Time Accounts This account will automatically renew at maturity. You will have [____ calendar/business] days after the maturity date to withdraw funds without penalty; or There is no grace period following the maturity of this account to withdraw funds without penalty. (2) Non-Automatically Renewable Time Accounts This account will not renew automatically at maturity. If you do not renew the account, your deposit will be placed in [an interest-bearing/a noninterest-bearing] account. (v) Required Interest Distribution This account requires the distribution of interest and does not allow interest to remain in the account. (i) Bonuses You will [be paid/receive] [$____/(description of item)] as a bonus [when you open the account/on (date) ____]. You must maintain a minimum [daily balance/average daily balance] of $____ to obtain the bonus. To earn the bonus, [$____/your entire principal] must remain on deposit [for (time period)/until (date)____]. B-2—Model Clauses for Change in Terms On (date), the cost of (type of fee) will increase to $____. On (date), the interest rate on your account will decrease to ____% with an annual percentage yield of ____%. On (date), the minimum [daily balance/average daily balance] required to avoid imposition of a fee will increase to $____. B-3—Model Clauses for Pre-Maturity Notices for Time Accounts (a) Automatically Renewable Time Accounts With Maturities of One Year or Less But Longer Than One Month Your account will mature on (date). If the account renews, the new maturity date will be (date). The interest rate for the renewed account will be ____% with an annual percentage yield of ____%; or The interest rate and annual percentage yield have not yet been determined. They will be available on (date). Please call (phone number) to learn the interest rate and annual percentage yield for your new account. (b) Non-Automatically Renewable Time Accounts With Maturities Longer Than One Year Your account will mature on (date). If you do not renew the account, interest [will/will not] be paid after maturity. Appendix C to Part 1030—Effect on State Laws ( a State law requirements that are inconsistent with the requirements of the act and this part are preempted to the extent of the inconsistency. A state law is inconsistent if it requires a depository institution to make disclosures or take actions that contradict the requirements of the federal law. A state law is also contradictory if it requires the use of the same term to represent a different amount or a different meaning than the federal law, requires the use of a term different from that required in the federal law to describe the same item, or permits a method of calculating interest on an account different from that required in the federal law. ( b A depository institution, state, or other interested party may request the Bureau to determine whether a state law requirement is inconsistent with the federal requirements. A request for a determination shall be in writing and addressed to the Bureau of Consumer Financial Protection, 1700 G Street NW., Washington, DC 20552. Notice that the Bureau intends to make a determination (either on request or on its own motion) will be published in the Federal Register, Federal Register ( c After the Bureau determines that a state law is inconsistent, a depository institution may not make disclosures using the inconsistent term or take actions relying on the inconsistent law. ( d The Bureau reserves the right to reverse a determination for any reason bearing on the coverage or effect of state or federal law. Notice of reversal of a determination will be published in the Federal Register [76 FR 79278, Dec. 21, 2011, as amended at 88 FR 16543, Mar. 20, 2023] Appendix D to Part 1030—Issuance of Official Interpretations Except in unusual circumstances, interpretations will not be issued separately but will be incorporated in an official commentary to this part, which will be amended periodically. No interpretations will be issued approving depository institutions' forms, statements, or calculation tools or methods. Supplement I to Part 1030—Official Interpretations Introduction 1. Official status. Section 1030.1 Authority, purpose, coverage, and effect on state laws (c) Coverage 1. Foreign applicability. 2. Persons who advertise accounts. Section 1030.2—Definitions (a) Account. 1. Covered accounts. i. Interest-bearing and noninterest-bearing accounts. ii. Deposit accounts opened as a condition of obtaining a credit card. iii. Accounts denominated in a foreign currency. iv. Individual retirement accounts (IRAs) and simplified employee pension (SEP) accounts. v. Payable on death (POD) or “Totten trust” accounts. 2. Other accounts. i. Mortgage escrow accounts for collecting taxes and property insurance premiums. ii. Accounts established to make periodic disbursements on construction loans. iii. Trust accounts opened by a trustee pursuant to a formal written trust agreement (not merely declarations of trust on a signature card such as a “Totten trust,” or an IRA and SEP account). iv. Accounts opened by an executor in the name of a decedent's estate. 3. Other investments. i. Government securities. ii. Mutual funds. iii. Annuities. iv. Securities or obligations of a depository institution. v. Contractual arrangements such as repurchase agreements, interest rate swaps, and bankers acceptances. (b) Advertisement. 1. Covered messages. i. Telephone solicitations. ii. Messages on automated teller machine (ATM) screens. iii. Messages on a computer screen in an institution's lobby (including any printout) other than a screen viewed solely by the institution's employee. iv. Messages in a newspaper, magazine, or promotional flyer or on radio. v. Messages that are provided along with information about the consumer's existing account and that promote another account at the institution. 2. Other messages. i. Rate sheets in a newspaper, periodical, or trade journal (unless the depository institution, or a deposit broker offering accounts at the institution, pays a fee for or otherwise controls publication). ii. In-person discussions with consumers about the terms for a specific account. iii. For purposes of § 1030.8(b) of this part through § 1030.8(e) of this part, information given to consumers about existing accounts, such as current rates recorded on a voice-response machine or notices for automatically renewable time account sent before renewal. iv. Information about a particular transaction in an existing account. v. Disclosures required by federal or other applicable law. vi. A deposit account agreement. (f) Bonus. 1. Examples. 2. De minimis rule. de minimis de minimis. de minimis i. Disability insurance premiums valued at an amount of $10 or less per year. ii. Coffee mugs, T-shirts or other merchandise with a market value of $10 or less. 3. Aggregation. 4. Waiver or reduction of a fee or absorption of expenses. i. A safe deposit box rental fee for consumers who open a new account. ii. Fees for travelers checks for account holders. iii. Discounts on interest rates charged for loans at the institution. (h) Consumer. 1. Professional capacity. 2. Other accounts. 3. Sole proprietors. 4. Retirement plans. (j) Depository institution and institution. 1. Foreign institutions. (k) Deposit broker. 1. General. (n) Interest. 1. Relation to bonuses. (p) Passbook savings account. 1. Relation to Regulation E. (q) Periodic statement. 1. Examples. i. Additional statements provided solely upon request. ii. General service information such as a quarterly newsletter or other correspondence describing available services and products. (t) Tiered-rate account. 1. Time accounts. 2. Minimum balance requirements. (u) Time account. 1. Club accounts. Relation to Regulation D. (v) Variable-rate account. 1. General. Section 1030.3—General Disclosure Requirements (a) Form. 1. Design requirements. i. In any order. ii. In combination with other disclosures or account terms. iii. In combination with disclosures for other types of accounts, as long as it is clear to consumers which disclosures apply to their account. iv. On more than one page and on the front and reverse sides. v. By using inserts to a document or filling in blanks. vi. On more than one document, as long as the documents are provided at the same time. 2. Consistent terminology. (b) General. 1. Specificity of legal obligation. (c) Relation to Regulation E. 1. General rule. i. An institution changes a term that triggers a notice under Regulation E, and uses the timing and disclosure rules of Regulation E for sending change-in-term notices. ii. Consumers add an ATM access feature to an account, and the institution provides disclosures pursuant to Regulation E, including disclosure of fees (see 12 CFR 1005.7.) iii. An institution complying with the timing rules of Regulation E discloses at the same time fees for electronic services (such as for balance inquiry fees at ATMs) required to be disclosed by this part but not by Regulation E. iv. An institution relies on Regulation E's rules regarding disclosure of limitations on the frequency and amount of electronic fund transfers, including security-related exceptions. But any limitations on “intra-institutional transfers” to or from the consumer's other accounts during a given time period must be disclosed, even though intra-institutional transfers are exempt from Regulation E. (e) Oral response to inquiries. 1. Application of rule. 2. Relation to advertising. 3. Existing accounts. (f) Rounding and accuracy rules for rates and yields (f)(1) Rounding. 1. Permissible rounding. (f)(2) Accuracy. 1. Annual percentage yield and annual percentage yield earned. Section 1030.4—Account Disclosures (a) Delivery of account disclosures. (a)(1) Account opening. 1. New accounts. i. A time account that does not automatically rollover is renewed by a consumer. ii. A consumer changes a term for a renewable time account (see comment 5(b)-5 regarding disclosure alternatives.) iii. An institution transfers funds from an account to open a new account not at the consumer's request, unless the institution previously gave account disclosures and any change-in-term notices for the new account. iv. An institution accepts a deposit from a consumer to an account that the institution had deemed closed for the purpose of treating accrued but uncredited interest as forfeited interest (see comment 7(b)-3.) 2. Acquired accounts. (a)(2) Requests. Paragraph (a)(2)(i). 1. Inquiries versus requests. 2. General requests. 3. Timing for response. 4. Use of electronic means. Paragraph (a)(2)(ii)(A). 1. Recent rates. Paragraph (a)(2)(ii)(B). 1. Term. (b) Content of account disclosures. (b)(1) Rate information. (b)(1)(i) Annual percentage yield and interest rate. 1. Rate disclosures. 2. Fixed-rate accounts. 3. Tiered-rate accounts. 4. Stepped-rate accounts. (b)(1)(ii) Variable rates. Paragraph (b)(1)(ii)(B). 1. Determining interest rates. i. Identify the index and specific margin, if the interest rate is tied to an index. ii. State that rate changes are within the institution's discretion, if the institution does not tie changes to an index. Paragraph (b)(1)(ii)(C). 1. Frequency of rate changes. Paragraph (b)(1)(ii)(D). 1. Limitations. (b)(2) Compounding and crediting. (b)(2)(ii) Effect of closing an account. 1. Deeming an account closed. (b)(3) Balance information. (b)(3)(ii) Balance computation method. 1. Methods and periods. (b)(3)(iii) When interest begins to accrue. 1. Additional information. (b)(4) Fees. 1. Covered fees. i. Maintenance fees, such as monthly service fees. ii. Fees to open or to close an account. iii. Fees related to deposits or withdrawals, such as fees for use of the institution's ATMs. iv. Fees for special services, such as stop-payment fees, fees for balance inquiries or verification of deposits, fees associated with checks returned unpaid, and fees for regularly sending to consumers checks that otherwise would be held by the institution. 2. Other fees. i. Fees for services offered to account and nonaccount holders alike, such as travelers checks and wire transfers (even if different amounts are charged to account and nonaccount holders). ii. Incidental fees, such as fees associated with state escheat laws, garnishment or attorneys fees, and fees for photocopying. 3. Amount of fees. 4. Tied-accounts. 5. Fees for overdrawing an account. (b)(5) Transaction limitations. 1. General rule. i. Limits on the number of checks that may be written on an account within a given time period. ii. Limits on withdrawals or deposits during the term of a time account. iii. Limitations required by Regulation D of the Board of Governors of the Federal Reserve System (12 CFR part 204) on the number of withdrawals permitted from money market deposit accounts by check to third parties each month. Institutions need not disclose reservations of right to require notices for withdrawals from accounts required by federal or state law. (b)(6) Features of time accounts. (b)(6)(i) Time requirements. 1. “Callable” time accounts. (b)(6)(ii) Early withdrawal penalties. 1. General. 2. Examples. i. Monetary penalties, such as “$10.00” or “seven days' interest plus accrued but uncredited interest.” ii. Adverse changes to terms such as a lowering of the interest rate, annual percentage yield, or compounding frequency for funds remaining on deposit. iii. Reclamation of bonuses. 3. Relation to rules for IRAs or similar plans. 4. Disclosing penalties. (b)(6)(iv) Renewal policies. 1. Rollover time accounts. 2. Nonrollover time accounts. Section 1030.5—Subsequent Disclosures (a) Change in terms. (a)(1) Advance notice required. 1. Form of notice. 2. Effective date. 3. Terms that change upon the occurrence of an event. 4. Examples. i. The termination of employment for consumers for whom account maintenance or activity fees were waived during their employment by the depository institution. ii. The expiration of one year in a promotion described in the account opening disclosures to “waive $4.00 monthly service charges for one year.” (a)(2) No notice required. (a)(2)(ii) Check printing fees. 1. Increase in fees. (b) Notice before maturity for time accounts longer than one month that renew automatically. 1. Maturity dates on nonbusiness days. 2. Disclosing when rates will be determined. i. A specific date, such as “October 28.” ii. A date that is easily determinable, such as “the Tuesday before the maturity date stated on this notice” or “as of the maturity date stated on this notice.” 3. Alternative timing rule. 4. Club accounts. 5. Renewal of a time account. i. If the change is initiated by the institution, the disclosure requirements of this paragraph apply. (Paragraph 1030.5(a) applies if the change becomes effective prior to the maturity of the existing time account.) ii. If the change is initiated by the consumer, the account opening disclosure requirements of § 1030.4(b) apply. (If the notice required by this paragraph has been provided, institutions may give new account disclosures or disclosures highlighting only the new term.) 6. Example. (b)(1) Maturities of longer than one year. 1. Highlighting changed terms. (c) Notice before maturity for time accounts longer than one year that do not renew automatically. 1. Subsequent account. Section 1030.6—Periodic Statement Disclosures (a) General rule. 1. General. 2. Regulation E interim statements. 3. Combined statements. i. The information is limited to the account number, the type of account, or balance information, and ii. The institution also provides a periodic statement complying with this section for each account. 4. Other information. i. Interest rates and corresponding periodic rates applied to balances during the statement period. ii. The dollar amount of interest earned year-to-date. iii. Bonuses paid (or any de minimis iv. Fees for products such as safe deposit boxes. (a)(1) Annual percentage yield earned. 1. Ledger and collected balances. (a)(2) Amount of interest. 1. Accrued interest. 2. Terminology. i. “Interest paid,” to describe interest that has been credited. ii. “Interest accrued” or “interest earned,” to indicate that interest is not yet credited. 3. Closed accounts. (a)(3) Fees imposed. 1. General. 2. Itemizing fees by type. i. Monthly maintenance and excess-activity fees. ii. “Transfer” fees, if different dollar amounts are imposed, such as $.50 for deposits and $1.00 for withdrawals. iii. Fees for electronic fund transfers and fees for other services, such as balance-inquiry or maintenance fees. iv. Fees for paying overdrafts and fees for returning checks or other items unpaid. 3. Identifying fees. i. Institutions may use a code to identify a particular fee if the code is explained on the periodic statement or in documents accompanying the statement. ii. Institutions using debit slips may disclose the date the fee was debited on the periodic statement and show the amount and type of fee on the dated debit slip. 4. Relation to Regulation E. (a)(4) Length of period. 1. General. 2. Opening or closing an account mid-cycle. (b) Special rule for average daily balance method. 1. Monthly statements and quarterly compounding. 2. Length of the period. 3. Quarterly statements and monthly compounding. Section 1030.7—Payment of Interest (a)(1) Permissible methods. 1. Prohibited calculation methods. i. Paying interest on the balance in the account at the end of the period (the “ending balance” method). ii. Paying interest for the period based on the lowest balance in the account for any day in that period (the “low balance” method). iii. Paying interest on a percentage of the balance, excluding the amount set aside for reserve requirements (the “investable balance” method). 2. Use of 365-day basis. 1/365 1/360 3. Periodic interest payments. 1/12 1/12 4. Leap year. 1/366 1/365 5. Maturity of time accounts. i. During a grace period offered for an automatically renewable time account, if consumers decide during that period not to renew the account. ii. Following the maturity of nonrollover time accounts. iii. When the maturity date falls on a holiday, and consumers must wait until the next business day to obtain the funds. 6. Dormant accounts. (a)(2) Determination of minimum balance to earn interest. 1. Daily balance accounts. 2. Average daily balance accounts. 3. Beneficial method. 4. Paying on full balance. 5. Negative balances prohibited. i. The daily or average daily balance on which interest will be paid. ii. Whether any minimum balance to earn interest is met. 6. Club accounts. 7. Minimum balances not affecting interest. (b) Compounding and crediting policies. 1. General. 2. Withdrawals prior to crediting date. 3. Closed accounts. (c) Date interest begins to accrue. 1. Relation to Regulation CC. 2. Ledger and collected balances. 3. Withdrawal of principal. Section 1030.8—Advertising (a) Misleading or inaccurate advertisements. 1. General. 2. Indoor signs. i. For a tiered-rate account, it also provides the lower dollar amount of the tier corresponding to the advertised annual percentage yield. ii. For a time account, it also provides the term required to obtain the advertised annual percentage yield. 3. Fees affecting “free” accounts. i. Any fee imposed when a minimum balance requirement is not met, or when consumers exceed a specified number of transactions. ii. Transaction and service fees that consumers reasonably expect to be imposed on a regular basis. iii. A flat fee, such as a monthly service fee. iv. Fees imposed to deposit, withdraw, or transfer funds, including per-check or per-transaction charges (for example, $.25 for each withdrawal, whether by check or in person). 4. Other fees. i. Fees not required to be disclosed under § 1030.4(b)(4). ii. Check printing fees. iii. Balance inquiry fees. iv. Stop-payment fees and fees associated with checks returned unpaid. v. Fees assessed against a dormant account. vi. Fees for ATM or electronic transfer services (such as preauthorized transfers or home banking services) not required to obtain an account. 5. Similar terms. 6. Specific account services. 7. Free for limited time. 8. Conditions not related to deposit accounts. 9. Electronic advertising. 10. Examples. i. Representing an overdraft service as a “line of credit,” unless the service is subject to Regulation Z, 12 CFR part 1026. ii. Representing that the institution will honor all checks or authorize payment of all transactions that overdraw an account, with or without a specified dollar limit, when the institution retains discretion at any time not to honor checks or authorize transactions. iii. Representing that consumers with an overdrawn account are allowed to maintain a negative balance when the terms of the account's overdraft service require consumers promptly to return the deposit account to a positive balance. iv. Describing an institution's overdraft service solely as protection against bounced checks when the institution also permits overdrafts for a fee for overdrawing their accounts by other means, such as ATM withdrawals, debit card transactions, or other electronic fund transfers. v. Advertising an account-related service for which the institution charges a fee in an advertisement that also uses the word “free” or “no cost” (or a similar term) to describe the account, unless the advertisement clearly and conspicuously indicates that there is a cost associated with the service. If the fee is a maintenance or activity fee under § 1030.8(a)(2) of this part, however, an advertisement may not describe the account as “free” or “no cost” (or contain a similar term) even if the fee is disclosed in the advertisement. 11. Additional disclosures in connection with the payment of overdrafts. (b) Permissible rates. 1. Tiered-rate accounts. 2. Stepped-rate accounts. 3. Representative examples. i. Provide a representative example of the annual percentage yields offered, clearly described as such. For example, if an institution offers a $25 bonus on all time accounts and the annual percentage yield will vary depending on the term selected, the institution may provide a disclosure of the annual percentage yield as follows: “For example, our 6-month certificate of deposit currently pays a 3.15% annual percentage yield.” ii. Indicate that various rates are available, such as by stating short-term and longer-term maturities along with the applicable annual percentage yields: “We offer certificates of deposit with annual percentage yields that depend on the maturity you choose. For example, our one-month CD earns a 2.75% APY. Or, earn a 5.25% APY for a three-year CD.” (c) When additional disclosures are required. 1. Trigger terms. i. “One, three, and five year CDs available.” ii. “Bonus rates available.” iii. “1% over our current rates,” so long as the rates are not determinable from the advertisement. (c)(2) Time annual percentage yield is offered. 1. Specified date. 2. Reference to date of publication. (c)(5) Effect of fees. 1. Scope. (c)(6) Features of time accounts. (c)(6)(i) Time requirements. 1. Club accounts. (c)(6)(ii) Early withdrawal penalties. 1. Discretionary penalties. (d) Bonuses. 1. General reference to “bonus.” (e) Exemption for certain advertisements. (e)(1) Certain media. Paragraph (e)(1)(i). 1. Internet advertisements. Paragraph (e)(1)(iii). 1. Tiered-rate accounts. (e)(2) Indoor signs. Paragraph (e)(2)(i). 1. General. Section 1030.9—Enforcement and Record Retention (c) Record retention. 1. Evidence of required actions. i. Established and maintained procedures for paying interest and providing timely disclosures as required by the regulation, and ii. Retained sample disclosures for each type of account offered to consumers, such as account-opening disclosures, copies of advertisements, and change-in-term notices; and information regarding the interest rates and annual percentage yields offered.2. Methods of retaining evidence. 3. Payment of interest. Section 1030.10 [Reserved] Section 1030.11—Additional Disclosures Regarding the Payment of Overdrafts (a) Disclosure of total fees on periodic statements. (a)(1) General. 1. Transfer services. 2. Fees for paying overdrafts. See also Fees for returning items unpaid. 4. Waived fees. 5. Totals for the calendar year to date. 6. Itemization of fees. (a)(3) Format requirements. 1. Time period covered by periodic statement disclosures. (b) Advertising disclosures for overdraft services. 1. Examples of institutions promoting the payment of overdrafts. i. Promotes the institution's policy or practice of paying overdrafts (unless the service would be subject to Regulation Z (12 CFR part 1026)). This includes advertisements using print media such as newspapers or brochures, telephone solicitations, electronic mail, or messages posted on an Internet site. (But see § 1030.11(b)(2) of this part for communications that are not subject to the additional advertising disclosures.) ii. Includes a message on a periodic statement informing the consumer of an overdraft limit or the amount of funds available for overdrafts. For example, an institution that includes a message on a periodic statement informing the consumer of a $500 overdraft limit or that the consumer has $300 remaining on the overdraft limit, is promoting an overdraft service. iii. Discloses an overdraft limit or includes the dollar amount of an overdraft limit in a balance disclosed on an automated system, such as a telephone response machine, ATM screen or the institution's Internet site. (See, however, § 1030.11(b)(3) of this part.) 2. Transfer services. 3. Electronic media. 4. Fees. 5. Categories of transactions. 6. Time period to repay. 7. Circumstances for nonpayment. 8. Advertising an account as “free.” (c) Disclosure of account balances. 1. Balance that does not include additional amounts. 2. Retail sweep programs. i. The account involved complies with Regulation D of the Board of Governors of the Federal Reserve System (12 CFR 204.2(d)(2)); ii. The consumer does not have direct access to the non-transaction subaccount that is part of the retail sweep program; and iii. The consumer's periodic statements show the account balance as the combined balance in the subaccounts. 3. Additional balance. e.g. 4. Automated systems. Appendix A to Part 1030—Annual Percentage Yield Calculation Part I. Annual Percentage Yield for Account Disclosures and Advertising Purposes 1. Rounding for calculations. i. The daily rate applied to a balance carried to five or more decimal places ii. The daily interest earned carried to five or more decimal places Part II. Annual Percentage Yield Earned for Periodic Statements 1. Balance method. 2. Negative balances prohibited. A. General Formula 1. Accrued but uncredited interest. i. May not be included in the balance for statements issued at the same time or less frequently than the account's compounding and crediting frequency. For example, if monthly statements are sent for an account that compounds interest daily and credits interest monthly, the balance may not be increased each day to reflect the effect of daily compounding. ii. Must be included in the balance for succeeding statements if a statement is issued more frequently than compounded interest is credited on an account. For example, if monthly statements are sent for an account that compounds interest daily and credits interest quarterly, the balance for the second monthly statement would include interest that had accrued for the prior month. 2. Rounding. B. Special Formula for Use Where Periodic Statement Is Sent More Often Than the Period for Which Interest Is Compounded 1. Statements triggered by Regulation E. 2. Days in compounding period. Appendix B to Part 1030—Model Clauses and Sample Forms 1. Modifications. 2. Format. 3. Disclosures for opening accounts. 4. Compliance with Regulation E. 5. Duplicate disclosures. 6. Sample forms. B-1 Model Clauses for Account Disclosures B-1(h) Disclosures Relating to Time Accounts 1. Maturity. B-2 Model Clauses for Change in Terms 1. General. B-4 Sample Form (Multiple Accounts) 1. Rate sheet insert. B-6 Sample Form (Tiered-Rate Money Market Account) 1. General. [76 FR 79278, Dec. 21, 2011, as amended at 84 FR 31701, July 3, 2019; 89 FR 82934, 82942, Oct. 15, 2024; 89 FR 95083, Dec. 2, 2024; 89 FR 104400, Dec. 23, 2024]