Can interest rates for deposit accounts be shown by themselves in advertisements?

The correct response is that interest rates for deposit accounts must be displayed with the annual percentage yield (APY) in any advertisements. This requirement is set forth by the Truth in Savings Act to ensure transparency and protect consumers. The APY is critical because it takes into account the interest rate as well as the frequency of compounding, providing a more comprehensive understanding of the potential earnings from a deposit account.

When institutions advertise interest rates without including the APY, they risk misleading consumers about the actual return on their investment. The requirement to show both ensures that consumers can make informed comparisons between different financial products, thus promoting fair competition and enhancing consumer understanding of their savings options.