Truth-in-savings Act
Act passed by Congress in 1991, the purpose of which is to make it easier for consumers to compare deposit accounts among savings institutions (SI). Some of the act's more important provisions include: SI must pay interest on the full amount of a depositor's balance; SI must use a standardized formula for computing the annual percentage yield (APY). The APY is based on the interest rate and the method of compounding that interest; SI must disclose all fees imposed on checking, savings, money market, or Super NOW accounts as well as any other terms or restrictions. These disclosures are required before the account is opened, before automatic renewals, or upon the request of the savings customer. The savings institution must inform current savings account customers of the availability of the disclosures and include these disclosures with the savings customer's regular account statement; and SI must be in compliance with standardized rules concerning their promotional activities for advertising. All solicitations (whether in print, TV, radio, etc.) for savings deposits must state in a clear and conspicuous manner: annual percentage yield; period of time that the yield is in effect; minimum account balance required to earn the yield; minimum time period required to earn the yield; minimum amount required to open the account; interest penalty is required for early withdrawals; and the fact that fees may result in the reduction of the Annual Percentage Yield.
Popular Insurance Terms
Designation earned by passing 10 national examinations on subjects including mathematics of life and health insurance, actuarial science, insurance, accounting, finance, and employee ...
Forced entry into premises. Coverage is provided under various property insurance contracts such as homeowners and special multiperil insurance (SMP). ...
Risk management control procedure that emphasizes safety management. Its purpose is to reduce the frequency and severity of potential losses. Business firms apply this procedure by posting ...
Same as term Close Corporation Plan: prior arrangement for surviving stockholders to purchase shares of a deceased stockholder according to a predetermined formula for setting the value of ...
Fixed or stated amount of interest paid by a security expressed as a percent of the par value of the security. The longer the length of time until maturity, the higher the coupon rate to ...
Legislation designed to provide the structural reform necessary to strengthen the thrift industry after the bailout of the insolvent Federal Savings and Loan Insurance Corporation (FSLIC) ...
Coverage for specialists in various professional fields. Since basic liability policies do not protect against situations arising out of business or professional pursuits, professional ...
Changing state of the economy associated with changes in human wants and desires such that losses or gains occur. Dynamic changes are not insurable. ...
Coverage for liability exposures that result from manufacturing and/or contracting operations in process on a manufacturer's premises (all locations of ongoing operations) or, in the case ...
Have a question or comment?
We're here to help.