New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 13 - Depositor Savings Information ("truth-in-savings")
Section 13.4 - Disclosure of information on savings accounts

Universal Citation: 3 NY Comp Codes Rules and Regs ยง 13.4

Current through Register Vol. 46, No. 12, March 20, 2024

Each banking organization shall disclose the following information on savings accounts, if applicable:

(a) the annual interest rate;

(b) the annual percentage yield;

(c) the compounding period;

(d) the periodic percentage rate paid in each compounding period;

(e) the principal amount to which the periodic percentage rate is applied ( e.g., balance at the end of each day, the average balance for the quarter, the low balance for the quarter, etc.), including the following information, if applicable:

(1) if interest is not paid on the 31st day of the month for those months with 31 days;

(2) the time or day the deposit begins to earn interest, if other than the day on which the deposit is made;

(3) the manner in which a withdrawal affects the interest calculation, e.g., Last In First Out (LIFO), First In First Out (FIFO), etc.; and

(4) the manner in which interest is paid on funds which are transferred from one account to another account within the banking organization, if such a transfer is treated differently from any other deposit;

(f) the frequency of crediting interest:

(1) state the periods for which interest is paid (e.g.,quarterly, semiannually, etc.);

(2) state the manner in which interest is distributed (e.g.,added to the balance, mailed by check, credited to another account);

(g) any delay in crediting a deposited instrument or any delay before a customer may draw against a deposited instrument;

(h) the "grace" periods for deposits and withdrawals:

(1) define the "grace" periods;

(2) state the effect the "10th day" has if it occurs on a nonbusiness day;

(i) minimum balance required to earn interest (e.g., whether there is a minimum balance under which no interest will be paid, or whether earned interest on a DOD/DOW account will be lost if $25 is not left in the account until the end of the quarter);

(j) the minimum length of time funds must remain on deposit to earn interest;

(k) whether a withdrawal request can be refused (e.g., privilege to require notice of intent to withdraw as provided by law or regulations);

(l) under what circumstances a service charge may be imposed on a savings account (e.g., any service charge for checks deposited and returned because of insufficient funds or payment stopped; any penalties for closing of the account before a specific date, as in promotional accounts); and

(m) what constitutes an inactive account, any fees levied on inactive accounts, how a depositor can avoid having the account become inactive and how an inactive account can be reinstated as an active account.

Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.