DEFINITION of 'Truth in Savings Act '
A federal law passed by Congress on December 19, 1991 as part of the Federal Deposit Insurance Corporation (FDIC) Improvement Act of 1991. The act was implemented under Federal Regulation DD. The Truth in Savings Act was designed to help promote competition between depository institutions and make it easier for consumers to compare interest rates, fees and terms associated with savings institutions' deposit accounts. The Truth in Savings Act established uniform guidelines for how banks and other financial institutions disclose information about deposit accounts to individuals.
Also known as TISA.
BREAKING DOWN 'Truth in Savings Act '
The Truth in Savings Act applies to individuals opening accounts for personal or household use. It does not apply to business accounts opening a corporate account or organizations (such as nonprofits) opening a business deposit account.