Which type of account requires disclosure of the APY with each deposit?

The Annual Percentage Yield (APY) is a key measure that informs consumers about the potential earnings from their deposits over a year, taking into account compounding interest. When it comes to passbook savings accounts, the Truth in Savings Act mandates that financial institutions disclose the APY associated with these accounts because they typically offer interest that can be compounded regularly.

The disclosure of the APY for passbook accounts helps consumers compare these accounts with other savings products in the market, ensuring transparency and allowing them to make informed decisions regarding where to place their savings. This requirement enhances the understanding of the interest earnings the customer can expect, especially as balances vary and interest is compounded.

On the other hand, checking accounts, while they may offer minimal interest, often do not require APY disclosure since they are primarily transactional in nature rather than savings-focused. Certificates of Deposit and Money Market accounts certainly have their own rules under TISA regarding APY disclosures, but the specific requirement outlined in the question pertains to how it is prominently disclosed with each deposit made in a passbook savings account.