Truth in Savings Act
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| Financial regulation in the United States | |
| Dodd-Frank Act | |
| Federal Reserve | |
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The Truth in Savings Act (TISA) was a federal financial regulation law passed in 1991. The act was a part of the Federal Deposit Insurance Corporation Improvement Act of 1991. The law required financial institutions to disclose to consumers the rates of interest and fees associated with an account.[1]
Legislative history
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), which contained the Truth in Savings Act (TISA), was introduced in the U.S. Senate by Senator Donald Riegle (D) and passed the Senate on November 21, 1991. The bill then moved to the U.S. House, where it was passed in identical form two days later on November 23, 1991. The bill was signed into by President George H.W. Bush (R) on December 19, 1991.[2]
Components
TISA required financial institutions to establish uniform disclosures, which had to be given to consumers opening new savings accounts. The act required that the financial institution disclose the rate of interest on the account as an annual percentage yield (APY). This figure represents the interest rate based on a compounding period of one year. Institutions had to also disclose any fee associated with the account, such as an early withdrawal fee or annual fee for the account.[1]
The provisions of TISA applied only to people opening an account for personal or household use. It did not apply to accounts opened by businesses or other organizations.[1]
See also
External links
Federal Deposit Insurance Corporation
Footnotes
