Understanding the Truth In Savings Act

The Truth in Savings Act is a law that was put into place in 1991. This law was designed to help individuals that use banking services. Here are the basics of the Truth in Savings Act and how it can benefit you as a consumer.

Truth in Savings Act

The main objective with the Truth in Savings Act is to provide more information to the consumer. When you open any type of account with a bank or another financial institution, the institution is going to be obligated to provide you with detailed information about the account. For example, they are going to have to provide you with information about the interest rates and any fees that they plan on charging you. This applies to checking accounts, savings accounts, CDs and any other type of account that you might open with the financial institution. 

Purpose

The purpose of this act is to help the customer and to help the economy as a whole. Customers need to be able to compare the accounts of one bank to the accounts of another. This gives them the freedom to shop around and choose the best types of accounts for their individual needs.


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