Question: Hey Heather. Our credit union is going to offer a limited time CD promo to bring some money in. We have an outside reader board that we have used in the past for marketing, but we’ve never advertised rates. I don’t want to be out of compliance, but if are going to offer a CD promo 12 months at 5.25% with an APY of 5.27%, how do we need to make sure that board reads to be in compliance?

Answer: It’s going to be tough. There is a partial exemption in the NCUA’s Truth in Savings Act Regulation for ads that disclose an APY, which is a trigger term that requires additional information. However, you would still need to include the following disclosures:

• You must disclose the APY, but you don’t need to disclose the simple interest rate.
• You must spell out the phrase “Annual Percentage Yield” at least once
• The minimum balance required to earn the advertised APY
• The term of the account (you’ve got that covered if you say “12 months”)
• BTW, you can’t call certificates a “CD” or a “Certificate of Deposit” if you pay dividends instead of interest
• You will also need to throw “Insured by the NCUA” on there since you’re advertising a deposit account