1. (a) the reference to the basis of compounding shall be limited to the word “compounded” and the actual time period or interval used; further, such reference shall not be emphasized or otherwise given prominence within the advertisement and, in the case of a printed advertisement, shall not appear in a type size which is larger than that of the text of such advertisement;
2. (b) the advertisement shall state prominently the effective annual yield achieved by compounding on the basis used as well as the simple annual interest rate in accordance with subsection 2.1 hereof;
3. (c) the advertisement shall state the monetary difference in the amount earned annually, on the sum of $1,000, between the method of compounding used and compounding on a daily basis; and

4. (d) no further statement regarding the basis of compounding, which is not specifically permitted by this subsection 2.2, shall be included in such advertisement.

   Irrespective of the description of the method of compounding used, the maximum interest rate permitted by the appropriate regulatory authority may be paid.

While it is the policy of the superintendent to encourage the payment of the maximum permitted interest rates on savings and time accounts, provided sufficient earnings are available to make such payments, it is the superintendent's belief that advertisements which give prominence to statements such as interest is “compounded continuously” , “compounded every minute of the day”, “compounded every second” or “compounded even while you sleep” may be confusing. Accordingly, the following guidelines are established for advertisements which refer to compounding interest for periods of less than one day: