N.Y. Comp. Codes R. & Regs. tit. 3 § 13.4

Current through Register Vol. 46, No. 51, December 18, 2024

Section 13.4 - Disclosure of information on savings accounts

Each banking organization shall disclose the following information on savings accounts, if applicable:

(a) the annual interest rate;

(b) the annual percentage yield;

(c) the compounding period;

(d) the periodic percentage rate paid in each compounding period;

(e) the principal amount to which the periodic percentage rate is applied ( e.g., balance at the end of each day, the average balance for the quarter, the low balance for the quarter, etc.), including the following information, if applicable:

(1) if interest is not paid on the 31st day of the month for those months with 31 days;

(2) the time or day the deposit begins to earn interest, if other than the day on which the deposit is made;

(3) the manner in which a withdrawal affects the interest calculation, e.g., Last In First Out (LIFO), First In First Out (FIFO), etc.; and

(4) the manner in which interest is paid on funds which are transferred from one account to another account within the banking organization, if such a transfer is treated differently from any other deposit;

(f) the frequency of crediting interest:

(1) state the periods for which interest is paid (e.g.,quarterly, semiannually, etc.);

(2) state the manner in which interest is distributed (e.g.,added to the balance, mailed by check, credited to another account);

(g) any delay in crediting a deposited instrument or any delay before a customer may draw against a deposited instrument;

(h) the "grace" periods for deposits and withdrawals:

(1) define the "grace" periods;

(2) state the effect the "10th day" has if it occurs on a nonbusiness day;

(i) minimum balance required to earn interest (e.g., whether there is a minimum balance under which no interest will be paid, or whether earned interest on a DOD/DOW account will be lost if $25 is not left in the account until the end of the quarter);

(j) the minimum length of time funds must remain on deposit to earn interest;

(k) whether a withdrawal request can be refused (e.g., privilege to require notice of intent to withdraw as provided by law or regulations);

(l) under what circumstances a service charge may be imposed on a savings account (e.g., any service charge for checks deposited and returned because of insufficient funds or payment stopped; any penalties for closing of the account before a specific date, as in promotional accounts); and

(m) what constitutes an inactive account, any fees levied on inactive accounts, how a depositor can avoid having the account become inactive and how an inactive account can be reinstated as an active account.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 13.4