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
Life insurance policy death benefit or cash value paid out in a series of installments, rather than in a lump sum. ...
Program designed as protection for political risk (action taken by a foreign government resulting in financial loss to companies trading or investing overseas). Coverage is provided for ...
Inability of the insured to perform any and all important daily duties of that insured's occupation. ...
Historical mortality table that replaced the group annuity table, 1951, whose statistics at that time were more current than the replaced table. This table was subsequently replaced by the ...
Property insurance closely associated with fire insurance and usually purchased in conjunction with a Standard Fire Policy. Allied lines include data processing insurance, demolition ...
Condition surrounding a work environment that increases the probability of death, disability, or illness to a worker. This class of hazard is considered when writing workers COMPENSATION ...
Classification of ships according to their construction material, age, physical condition, propulsion type, stress tests of structure, and owners. Marine insurance rates for a particular ...
Forgery insurance covering securities issues such as stocks and bonds. They protect the issuer of securities against forgery of the securities. ...
interconnection of computers that contain pages classified into groups called web sites that can be accessed over the internet. The only requirement for visiting a web site is to have ...
Have a question or comment?
We're here to help.