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InfoSight Highlight: Advertising Deposit Accounts
Friday, February 3, 2017 6:30 AM

All deposit advertisements should include either the NCUA official sign or an abbreviated statement, both of which can be found in Section 740 of NCUA Rules and Regulations. A Credit Union can choose one of the following options to comply with this Regulation:

  1. Use the statement, “This credit union is federally insured by the National Credit Union Administration,”
  2. Use the short statement, “Federally Insured by NCUA”; or 
  3. Display the official sign in their advertisements.

The official advertising statement must be in a size and print that is clearly legible. However, if the NCUA official sign in the advertisement is so small that the NCUA's sign and the two lines of small type become indistinct, the credit union should use the NCUA official advertising statement or the short statement.

It should be credit union policy to:

  • Not use any misleading or inaccurate advertisements; 
  • Include specific rate information whenever rates are included in advertisements; 
  • Provide additional information in advertisements that contain or advertise information about rates or bonuses; and 
  • Not state that a deposit with the credit union is safer than a deposit with an insured savings and loan association or bank.

What do credit unions have to do to comply with the advertising rules?
If a deposit account advertisement will state a rate of return, the advertisement must reflect the rate as an "annual percentage yield," using that term. A credit union may also use the abbreviation "APY" as long as the full term "annual percentage yield" appears at least once in the advertisement.

The only other rate that a credit union can include in a deposit advertisement is the dividend rate related to the APY. A credit union must use the actual term "dividend rate." It must appear with the APY and cannot be shown more conspicuously. Deposit advertising should not include the term "annual percentage rate" in any context.

Source:  InfoSight Compliance.

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