Pub. 13 2018-2019 Issue 3

NEBRASKA BANKERS ASSOCIATION 21 required to obtain the APY should be disclosed. If there are tiers, it should be included for each tier. There should be a statement that fees could reduce the earnings on the account. For time ac- counts, the term of the account should be disclosed and if there may be early withdrawal penalties and any required interest payouts. 6 If the advertisement states that the APY and other terms may vary depending on the initial deposit or term, it does not need to disclose every possible combination available. The bank may instead disclose an example such as “For example, our 12-month certificate of deposit accounts currently pays 2.25% annual percentage yield.” 7 Certain advertising mediums are exempt from some of the trigger terms rules. Radio and television ads, billboards and other outdoor media, and telephone response machines are not required to disclose variable rates, time the APY is offered, minimum opening deposits, ef - fect of fees, early withdrawal penalties for time accounts, or the minimum balance necessary to obtain a bonus and when it will be provided. For advertisements made for tiered-rate accounts through telephone response machines, the adver- tisement must state the APYs and the bal- ance required for each tier. 8 However, if it is feasible and practical to do so, it would be best practice to include all trigger term disclosures. Indoor signs are not subject to any of the trigger termdisclosures. Indoor signs are signs inside the bank. This includes advertisements displayed on computer screens, banners, posters, and chalk or peg boards but does not include brochures or computer printouts that the consumer may take with them. 9 It can sometimes be challenging to include all of the required disclosures in electronic advertising. Sometimes it is a digital copy of a flyer and the disclosures fit easily. Other times the advertisement may be restricted in its size, such as in a small banner advertisement. In that case, it must contain a hyperlink for additional information directly next to or within a statement regarding a term that requires additional disclosures. This is especially true for Trigger Terms. 10 There are also special rules related to bonuses. Regulation DD defines a bonus as a “premium, gift, award, or other con- sideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a consumer during a year in exchange for opening, maintaining, renewing, or increasing an account balance. The term does not include interest , other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses.” 11 However, discount coupons, such as 50% off at a restaurant, are not considered a bonus. Discounts or fee waivers for other products offered by the bank, such as a safety deposit fee, are also not consid- ered a bonus. Furthermore, if an item has a value of less than $10, it is also not a bonus under the De Minimis Rule. The rule states that the bank may use the IRS value standards to determine the value of items, but general items that would be considered to be worth less than $10 are t-shirts, coffee mugs, and other small promotional merchandise. 12 The value Deposit Advertising — continued on page 22