How must the APY, APYE, and interest rate be expressed?

The Annual Percentage Yield (APY), Annual Percentage Yield Earned (APYE), and interest rate must be expressed rounded to the nearest one-hundredth of one percent. This specific rounding is important because it provides a clear and precise understanding of the rate being offered to consumers, allowing for easier comparison among different financial products. Financial institutions are required to follow this standard to ensure transparency and consistency in their disclosures, which is a key objective of the Truth in Savings Act. Expressing these rates in this manner helps consumers make informed decisions about where to save their money, as even a small difference in interest rates can significantly impact overall earnings over time.