Truth in Savings Act
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| Financial regulation in the United States | |
| Dodd-Frank Act | |
| Federal Reserve | |
| Financial regulation by state | |
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The Truth in Savings Act (TISA) is a federal financial regulation law passed in 1991. The act is a part of the Federal Deposit Insurance Corporation Improvement Act of 1991. The law requires 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 contains 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 requires financial institutions to establish uniform disclosures, which must be given to consumers opening new savings accounts. The act requires 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 must 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 apply only to people opening an account for personal or household use. It does not apply to accounts opened by businesses or other organizations.[1]
See also
External links
Federal Deposit Insurance Corporation
Footnotes
