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The Truth in Savings Act (also known by the acronym TISA) is a United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
 federal law that was passed on December 19, 1991. It was part of the larger Federal Deposit Insurance Corporation Improvement Act of 1991
Federal Deposit Insurance Corporation Improvement Act of 1991

The Federal Deposit Insurance Corporation Improvement Act of 1991 , passed during the Savings and loan crisis, strengthened the power of the Federal Deposit Insurance Corporation....
 and is implemented by Regulation DD. It established uniformity in the disclosure
Disclosure

Disclosure means the giving out of information, either voluntarily or to be in compliance with legal regulations or workplace rules....
 of terms and conditions regarding interest
Interest

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
 and fees when giving out information on or opening a new savings account. On passing this law, the US Congress
United States Congress

The United States Congress is the Bicameralism legislature of the Federal government of the United States of the United States of America, consisting of two houses, the United States Senate and the United States House of Representatives....
 noted that it would help promote economic stability, competition between depository institutions, and allow the consumer to make informed decisions.

The Truth in Savings Act requires the clear and uniform disclosure of rates of interest (annual percentage yield
Annual Percentage Yield

Annual Percentage Yield expresses an annual rate of interest taking into account the effect of compound interest, usually for deposit or investment products ....
 or APY) and the fees that are associated with the account so that the consumer is able to make a meaningful comparison between potential accounts.






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The Truth in Savings Act (also known by the acronym TISA) is a United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
 federal law that was passed on December 19, 1991. It was part of the larger Federal Deposit Insurance Corporation Improvement Act of 1991
Federal Deposit Insurance Corporation Improvement Act of 1991

The Federal Deposit Insurance Corporation Improvement Act of 1991 , passed during the Savings and loan crisis, strengthened the power of the Federal Deposit Insurance Corporation....
 and is implemented by Regulation DD. It established uniformity in the disclosure
Disclosure

Disclosure means the giving out of information, either voluntarily or to be in compliance with legal regulations or workplace rules....
 of terms and conditions regarding interest
Interest

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
 and fees when giving out information on or opening a new savings account. On passing this law, the US Congress
United States Congress

The United States Congress is the Bicameralism legislature of the Federal government of the United States of the United States of America, consisting of two houses, the United States Senate and the United States House of Representatives....
 noted that it would help promote economic stability, competition between depository institutions, and allow the consumer to make informed decisions.

The Truth in Savings Act requires the clear and uniform disclosure of rates of interest (annual percentage yield
Annual Percentage Yield

Annual Percentage Yield expresses an annual rate of interest taking into account the effect of compound interest, usually for deposit or investment products ....
 or APY) and the fees that are associated with the account so that the consumer is able to make a meaningful comparison between potential accounts. For example, a customer opening a certificate of deposit
Certificate of deposit

A certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, Savings and loan association, and credit unions....
 account must be provided with information about ladder rates (smaller interest rates with smaller deposits) and penalty fees for early withdrawal of a portion or all of the funds.

The Act is only applicable to deposit accounts that are held by a "natural person" for personal, household, or family use. Accounts owned by businesses or organizations such as churches and neighborhood associations
Neighbourhood

A neighbourhood or neighborhood is a geographically localised community within a larger city, town or suburb. Neighbourhoods are often social communities with considerable face-to-face interaction among members....
 are not subject to these rules.