Equivalent yield definition
Equivalent yield means the net yield paid by the financial institution on a given bank product. The net yield is determined by reducing the current interest or dividend on the bank product by service charges applied to earnings on the bank product. For example, the equivalent yield on a sweep account would be the then current sweep interest or dividend less the then current monthly sweep fee, and further reduced by any other service charges related to the sweep account product that are charged to other customers and which are permitted to be offset against interest or dividends paid on IOLTA or MJ-IOTA accounts. The financial institution shall determine the equivalent yield monthly, unless another method is agreed upon by the IOLTA Board.