What is the Truth in Savings Act?
The Truth in Savings Act is a federal law that protects consumers in North Carolina when it comes to banking and savings accounts. This law was passed in 1991 and it requires banks to provide customers with accurate and clear information about the interest rates, fees, periodic rate, annual percentage yield, and other terms and conditions of any savings accounts they offer. Under the Truth in Savings Act, banks must provide customers with a clear and conspicuously written disclosure statement that outlines the terms and conditions of the savings accounts that they offer. This includes the interest rate, fees, periodic rate, and other terms and conditions of the account that customers agree to when they open the account. This statement must be distributed to each customer at the time they open the account in North Carolina. The Truth in Savings Act also stipulates that banks must provide customers with regular statements showing the activity and balance of their account. The statement must show how the interest and other terms and conditions of the savings account have impacted any changes to the account balance. In addition, the Truth in Savings Act requires banks to provide customers with an annual disclosure statement. This statement must also include the terms and conditions of the savings account, the annual percentage yield, and any changes to the rates or terms and conditions of the account. In the event that the bank makes changes to the terms or conditions of the savings account, the bank must provide customers with a written notice of the change at least 30 days before the change takes effect. This allows customers adequate time to decide if they wish to close the account before the change takes effect.
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