A report in the FDIC's 2012 Winter issue of "Supervisory Insights" titled "High-Yield Checking Accounts: Know the Rules" reviews the typical features of these accounts and the issues that FDIC examiners have sometimes observed with the disclosures and marketing materials associated with these accounts. The article also highlights how examiners review banks' offerings of high-yield checking accounts for compliance with laws and regulations. Supervisory Insights
provides a forum for discussing how bank regulation and policy are put into practice in the field, sharing best practices, and communicating about the emerging issues that bank supervisors face.
Among the best practices recommended in the article:
State the purpose of the account and disclose examples of inappropriate behavior or account misuse. Identify the ramifications of engaging in such behavior. For example, the bank might state that the account cannot be used for multiple small-dollar POS transactions at the end of the statement cycle to earn the higher APY.
Read the article here
, starting on page 12