Regulatory Alerts2012-03-22
Interest Calculation on an On-call (SRO) Deposit
The Supervisor of Banks issued this directive to standardize interest calculation procedures for on-call (SRO) deposits, mandating daily compound interest and explicit disclosure of the annual adjusted rate. Banking corporations must inform depositors of this rate upon account opening and allow them to select whether accrued interest compounds within the deposit or transfers to a current account. The regulation defines an on-call deposit as a non-indexed, interest-bearing account accessible for daily withdrawal, thereby establishing clear operational and disclosure standards for financial institutions.
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