Under TISA, if an institution states a bonus in an advertisement, what must be clearly and conspicuously stated?

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The correct answer emphasizes that when a financial institution advertises a bonus tied to a deposit account under the Truth in Savings Act (TISA), it is mandatory to clearly and conspicuously disclose the Annual Percentage Yield (APY). The APY provides consumers with a standardized metric that reflects the total amount of interest they will earn on an account over a year, taking into account compounding, and it allows for a better comparison of the account's benefits with other financial products.

While the other options provide important information regarding the terms and conditions related to the bonus, the APY is critical because it quantifies the potential earnings from the account, which can have a significant impact on a consumer's decision. A well-rounded understanding of the APY helps ensure transparency and empowers consumers to make informed choices about where to deposit their money, consistent with the goals of TISA to promote clarity and fairness in the financial marketplace.

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