District Circular Letters

July 30, 1998

REGULATION DD:
ANNUAL PERCENTAGE YIELD

To Member and Nonmember Banks
and Others Concerned
in the Twelfth Federal Reserve District

Final Rule Regarding Disclosure of Annual Percentage Yield (Docket R-0869)

The Federal Reserve Board has made final a 1995 interim rule amending Regulation DD, Truth in Savings, regarding the disclosure of the annual percentage yield (APY). The rule permits institutions to disclose an APY equal to the contract interest rate for certain time accounts. The rule applies only to time accounts with maturities greater than one year that do not compound but that require interest distributions at least annually.

The final rule becomes effective August 28, 1998.

Copies

Copies of the Board's notice (Docket R-0869) are available from our Corporate Services Department. To request copies to be sent via mail, please call (415) 974-2748. To request copies to be sent via fax, please call (415) 974-3333, and specify document number 4242. Additional Information

For additional information regarding Regulation DD, please contact our Banking Supervision and Regulation Department, at (415) 974-2967.

FEDERAL RESERVE BANK OF SAN FRANCISCO