For banks using average daily balance calculations, what must they disclose?

In the context of the Truth in Savings Act (TISA), banks that use average daily balance calculations are required to provide consumers with specific disclosures. The accurate choice indicates that banks must disclose the Annual Percentage Yield Earned (APYE) along with the interest earned based on the particular time period used for the calculation.

This requirement is essential because it ensures that consumers are fully informed about how their interest is calculated and what they can expect to earn on their deposits. Providing the APYE helps customers compare the effectiveness of different savings accounts transparently and understand the potential returns associated with their deposits. Including the interest earned for the specific time period also gives consumers insight into how their funds have performed, enhancing their ability to make informed financial decisions.

In contrast, disclosing only the total balance, only the interest earned, or stating that no information is necessary would not meet the regulatory requirements for transparency and could leave consumers uninformed about key aspects of their savings account performance.