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 13.5 - Disclosure of information on time deposits

Universal Citation: 3 NY Comp Codes Rules and Regs ยง 13.5

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

Each banking organization shall disclose the following information on time deposits, if applicable:

(a) the annual interest rate;

(b) the annual percentage yield;

(c) the compounding period;

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

(e) The principal amount to which the periodic percentage rate is applied, 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; and

(3) the consequence of a maturity date which falls on a Saturday, Sunday or legal holiday;

(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) Whether additional deposits can be made to a time deposit after the account is opened (state what effect this has on extending the term);

(i) The banking organization's past policy or practice on withdrawals prior to maturity; the maturity date on which withdrawal is permitted (e.g., the maturity of each deposit is one year from the date of the deposit);

(j) Any penalty which will be imposed for early withdrawal:

(1) state those instances in which no penalty will be imposed;

(2) state any service charges or penalties and whether they are required by the FDIC or other regulatory agency;

(k) The conditions under which interest may be withdrawn with or without penalty or service charge (distinguish between interest earned by the specific account as opposed to interest carried over from another account);

(l) When notice of maturity will be sent to the depositor;

(m) Whether the time deposit will be automatically renewed:

(1) what happens if the banking organization does not offer an automatic renewal option;

(2) if the banking organization does offer the automatic renewal option:
(i) disclose the provisions relating to automatic renewal;

(ii) disclose whether the depositor may accept or decline the automatic renewal feature; and

(iii) indicate what happens if the depositor declines the automatic renewal feature;

(n) 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; and

(o) Any other fee, charges or penalties imposed on the time 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.