Regulations Respecting the Disclosure of Interest Rates Relating to Deposit Accounts and Debt Obligations
P.C. 1992-1096 1992-05-21
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 441 to 443 of the Bank ActFootnote *, is pleased hereby to revoke the Disclosure of Deposit Terms and Conditions Regulations, made on May 29, 1981Footnote **, and to make the annexed Regulations respecting the disclosure of interest rates relating to deposit accounts and debt obligations in substitution therefor, effective June 1, 1992.
Return to footnote *S.C. 1991, c. 46
2 In these Regulations,
Act means the Bank Act; (Loi)
- deposit account
deposit account means an interest-bearing deposit account. (compte de dépôt)
- point of service
point of service means a physical location to which the public has access and at which a bank carries on business with the public and opens or initiates the opening of deposit accounts through natural persons in Canada. (point de service)
- SOR/2009-45, s. 1
Disclosure in Respect of Deposit Accounts
3 (1) Subject to subsection (1.1), a bank shall disclose to a person who requests the bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(a) where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or
(b) where no statement of account is provided in respect of the deposit account, by means of
(i) a written statement copies of which are available and displayed in each branch of the bank where deposit accounts are kept, or
(ii) a general notice that is displayed in each of the bank’s branches where deposit accounts are kept, at each of the bank’s points of service and on the bank’s websites through which it offers deposit accounts in Canada.
(1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 445(3) of the Act, a bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include
(3) A written statement referred to in subsection (1.1) that is sent to a customer by mail is deemed to be provided to the customer on the fifth day after the postmark date on the statement.
- SOR/2001-469, s. 1
- SOR/2009-45, s. 2
- SOR/2014-273, s. 1(F)
4 Where there is a change in the rate of interest, or in the manner of calculating the amount of interest, that is applicable to a deposit account, the bank shall disclose the changes by means of
(a) a written statement delivered to the person in whose name the account is maintained;
(b) a written statement copies of which are available and displayed in each branch of the bank where deposit accounts are kept; or
(c) a general notice that is displayed in each of the bank’s branches where deposit accounts are kept, at each of the bank’s points of service and on the bank’s websites through which it offers deposit accounts in Canada.
- SOR/2009-45, s. 3
- SOR/2014-273, s. 2(F)
5 [Repealed, SOR/2009-45, s. 4]
Disclosure in Respect of Advertising
6 For the purposes of section 442 of the Act, in all advertisements in respect of interest-bearing deposits or debt obligations, a bank shall disclose how the amount of interest applicable to each deposit and debt obligation is to be calculated by means of a statement in the advertisement that clearly discloses
- Date modified: