The Federal Reserve Board has finalized a three-year-old interim rule governing interest rate disclosures on certain certificates of deposit.

As of Aug. 28, the new rule lets banks disclose the simple interest rate-rather than the annual percentage yield-on CDs with maturities of more than a year that distribute interest at least annually rather than compounding it in a depositor's account. Banks must tell consumers that the interest is distributed, not accrued.

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