truth in savings definition

truth in savings

Legislation passed in some countries, such as the Federal Deposit Insurance Act of 1991 in the US. Under these laws a depository institution (such as a bank or credit union) must, clearly and conspicuously, disclose the key details of the interest generating deposit account to the depositor. These details include (1) minimum amount required to open the deposit account, (2) penalty for early withdrawal of funds, (3) simple interest rate, and the (4) annualized interest (yield) on the deposited funds.

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