What You
Should Know
The Truth in Savings Act (Federal
Reserve Regulation DD)
Requires financial institutions to disclose the
following information on savings account plans
they offer:
- Fees on deposit accounts
- The interest rate
- Other terms and conditions
- The annual percent yield (APY),
which is the percentage rate expressing
the total amount of interest that
would be received on a $100 deposit
based on the annual rate and frequency
of compounding for a 365-day period.
Truth in Savings defines the year
as 365 days rather than 360, 366,
or some other number. This law
eliminates confusion caused by
the more than eight million variations
of interest calculation methods
previously used by financial institutions.
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