Question:  Hi Heather. Our credit union is going to offer a limited time certificate promotion.  The car wash next door has a reader board that we have used in the past for marketing, but we’ve never advertised rates.  If we are going to offer a 12 month certificate at 5.25% with an APY of 5.27%, what do we need to disclose to make sure that board is compliant? 

Answer: It’s going to be tough to get all required disclosures on the reader board and still have a coherent advertisement. The NCUA’s Truth in Savings Act Regulation has a  partial disclosure exemption for advertisements on outdoor media that disclose an APY (which is a trigger term that requires additional information). However, you will 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”)
• You will also need to throw “Insured by the NCUA” on there since you’re advertising a deposit account