What is the Truth in Savings Act?

The Truth in Savings Act is a federal banking law designed to protect consumers when opening bank accounts. This law requires banks and other financial institutions to clearly and accurately disclose all the terms and conditions associated with deposit accounts such as savings and checking accounts. The law mandates that banks must provide disclosures that cover all the information related to an account, such as interest rates, fees, withdrawal charges, how interest is compounded, and frequency of statement production. This law was created to ensure that consumers are aware of the conditions of their accounts before making a decision to open an account. Additionally, the law requires that if any of the terms of the account are changed, banks must notify the customer in writing in a timely manner. In Texas, the Office of the Comptroller of Currency enforces the Truth in Savings Act. This office is responsible for ensuring that banks and other financial institutions comply with the regulations set forth in the Truth in Savings Act. Violations of the law may result in criminal prosecution, civil liability, or administrative action against the responsible party.

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What is the Truth in Savings Act?

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