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Question About Use Of A 30 Day Month

ORInvestor
  |     |   44 posts since 2014

I opened a 60 month CD at Knoxville TVA Credit Union on June 30. The maturity listed was June 3, 2024. I was told that the difference between the expected maturity date of Jun 30, 2024 and the listed maturity date of June 3, 2024 was the CU's use of a 30 day month and a 360 day year.

I understand that some institutions may account for leap year in different ways.

The TVA CU approach may be common practice but I have never hear of a 60 month CD that did not mature in 5 calendar years later.

Is it acceptable practice practice to use a 360 day year?

Is it legal to advertise a 60 month CD that is 27 days less than 5 calendar years?

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Answers
EarthVisitor007
  |     |   25 posts since 2019
I do not know if it is acceptable or legal. What I do know is that in my experience it is not normal. In my experience I would have thought it was a typographical error.
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me1004
  |     |   1,379 posts since 2010
I have seen use of a 360 day year, or other number of days, such as 365, 364, at financial institutions, but as applied to the interest calculation and accrual. APY will be defined and explained in the disclosures.

But I do find it unusual for a five-year CD to be just about a month short of five years!
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