The Truth in Savings Act (TISA) protects consumers by regulating how banks can advertise, what they must disclose when you open an account, and what the bank does behind the scenes to manage their operations.

How Does the Truth in Savings Act Regulate Bank Disclosures?

TISA regulates how banks disclose information. This information allows you to comparison shop when looking for a bank. Information that banks are required to provide under the Truth in Savings Act includes:

  • Account disclosures – When opening your account you must be advised of various fees and requirements. The disclosure must be provided in writing in an easy-to-read format. Among the many disclosures to be made are: interest rates, minimum balance requirements, and returned check fees.
  • Ongoing disclosures – As long as you keep your account open with the bank, they are required to provide you with ongoing communications. These communications include: change in terms disclosures, interest rate disclosures on each statement, and renewal notices for Certificates of Deposit (CDs).

How Does the Truth in Savings Act Manage Bank Operations?

TISA regulates how your bank calculates and informs you of the interest or dividends that you should be earning on the balance of your account every day. Your monthly statement must contain the Annual Percentage Yield (APY). The APY must be calculated by every bank the same way. The APY will tell you how much interest or dividends you will earn on your account for every $100 which remains in the account for an entire year.

How Does the Truth in Savings Act Regulate Bank Advertising?

TISA regulates how banks communicate with the public about their products and features. Billboards, newspaper and radio ads, and posters displayed inside the bank are just a few of the items regulated by TISA. The bank cannot participate in misleading advertising and, if they discuss rates, the bank must state the APY.

Do I Need a Lawyer?

If you feel your bank is violating TISA and you believe you have been financially harmed, a qualified financial attorney experienced in consumer banking can discuss your problem and advise you of your rights and remedies.