What must be disclosed regarding minimum balances when advertising APY?

When advertising the Annual Percentage Yield (APY), it is essential to disclose the minimum balance required to earn that advertised APY. This requirement is part of the Truth in Savings Act (TISA), which aims to provide consumers with clear and accurate information about the terms and conditions associated with deposit accounts. By disclosing the minimum balance necessary to earn the advertised APY, financial institutions help consumers make informed comparisons between different accounts and understand the potential earnings they could receive.

This disclosure ensures transparency, allowing customers to assess whether they can meet the minimum balance requirements to take advantage of the higher yield. Without this information, consumers might be misled into thinking they could achieve the APY simply by opening an account without considering the necessary balance. Therefore, providing this specific information about the minimum balance requirement is critical for compliance with TISA and for fostering informed consumer choices.