When an advertisement states the APY, which other disclosure does Regulation DD require?

When an advertisement states the Annual Percentage Yield (APY), Regulation DD requires the disclosure of the minimum balance necessary to obtain the stated APY. This requirement ensures that consumers have a clear understanding of the conditions under which they can earn the advertised yield. By knowing the minimum balance, consumers can make informed decisions about whether they can realistically maintain that balance in order to take advantage of the benefits offered.

Disclosing the minimum balance to obtain the stated APY is vital for transparency, helping consumers compare different accounts effectively and ensuring that they are not misled by high yield advertisements that might be out of reach due to high balance requirements. This approach aligns with the overall objective of Regulation DD to promote informed consumer choices and financial literacy in the realm of savings accounts and deposit products.