What does Regulation DD require regarding advertised rates?

Regulation DD, which implements the Truth in Savings Act, mandates that financial institutions provide clear and accurate information about the terms and conditions of deposit accounts, including any advertised interest rates. The requirement for a clear mention of applicable account types for specific rates ensures that consumers understand which accounts qualify for the advertised rates. This transparency helps consumers make informed decisions by knowing exactly which products they are inquiring about when they see promotional offers.

For example, if a bank advertises a high interest rate, it must specify that this rate applies solely to a certain type of account, such as a high-yield savings account, rather than implying it might apply to all types of accounts. This requirement helps to eliminate confusion and sets clear expectations for consumers, allowing them to compare offers accurately across different financial institutions.

The other options do not directly align with the specific requirements set forth by Regulation DD. While hidden fees and penalties are important aspects of the overall account conditions, they are not specifically required to be mentioned in conjunction with advertised rates in the same way as applicable account types.