Truth in Savings Act

{{Short description|Act passed by the U.S. Congress in 1991}}

{{Infobox U.S. legislation

| shorttitle = Truth in Savings Act

| othershorttitles = {{unbulleted list|Federal Deposit Insurance Corporation Improvement Act of 1991|Foreign Bank Supervision Enhancement Act of 1991|Qualified Thrift Lender Reform Act of 1991}}

| longtitle = An Act to reform Federal deposit insurance, protect the deposit insurance funds, recapitalize the Bank Insurance Fund, improve supervision and regulation of insured depository institutions, and for other purposes.

| colloquialacronym =

| nickname = Bank Enterprise Act of 1991

| enacted by = 102nd

| effective date = December 19, 1991

| public law url = http://www.gpo.gov/fdsys/pkg/STATUTE-105/pdf/STATUTE-105-Pg2236.pdf

| cite public law = 102-242

| cite statutes at large = {{usstat|105|2236}} aka 105 Stat. 2334

| acts amended =

| acts repealed =

| title amended = 12 U.S.C.: Banks and Banking

| sections created = {{Usc-title-chap|12|44}} § 4301

| sections amended =

| leghisturl = http://thomas.loc.gov/cgi-bin/bdquery/z?d102:SN00543:@@@R

| introducedin = Senate

| introducedbill = {{USBill|102|S.|543}}

| introducedby = Donald W. Riegle, Jr. (D-MI)

| introduceddate = March 5, 1991

| committees = Senate Banking, Housing, and Urban Affairs

| passedbody1 = Senate

| passeddate1 = November 21, 1991

| passedvote1 = passed voice vote

| passedbody2 = House

| passedas2 =

| passeddate2 = November 23, 1991

| passedvote2 = passed voice vote

| conferencedate = November 27, 1991

| passedbody3 = House

| passeddate3 = November 27, 1991

| passedvote3 = agreed voice vote

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| passedbody4 = Senate

| passeddate4 = November 27, 1991

| passedvote4 = [http://www.govtrack.us/congress/votes/102-1991/s279 68–15]

| signedpresident = George H. W. Bush

| signeddate = December 19, 1991

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The Truth in Savings Act (TISA) is a United States federal law that was passed on December 19, 1991. It was part of the larger Federal Deposit Insurance Corporation Improvement Act of 1991 and is implemented by Regulation DD. It established uniformity in the disclosure of terms and conditions regarding interest and fees when giving out information on or opening a new savings account. On passing this law, the US Congress 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 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 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 are not subject to these rules.