What is the Truth in Savings Act?

The Truth in Savings Act is a law passed in Texas in 1991 that regulates how banks and other financial institutions advertise and inform customers about their savings accounts. The Act requires financial institutions to provide customers with specific information about the savings accounts they offer, such as the account’s interest rate, maturity date, and minimum balance requirements. It also requires banks to clearly disclose any fees associated with the account such as annual fees, maintenance fees, and fees for insufficient funds. This information must be made available to the customer in a clear and easy to understand format, so that customers can make an informed decision about the savings account that best meets their needs. Lastly, the Act prohibits banks from making false or misleading statements about the features of an account in their advertisements and promotions. This helps to ensure that customers have accurate information when comparing different savings accounts. The Truth in Savings Act helps to protect customers in Texas by making sure that banks and other financial institutions are transparent in their advertising and information about savings accounts.

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What is the Truth in Savings Act?

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