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Definition: Truth in Savings Act
The application of the Truth in Savings Act is mainly on the individuals who are opening accounts for personal or for household use. The main point to understand is that the Truth in Savings Act is not applicable to the business accounts that is for a corporate account or for the business account opened by a non-profit organization.
This federal law was passed by Congress on Dec 19, 1991 as a portion of the Federal Deposit Insurance Corporation (FDIC) Improvement Act of 1991. This act was applied under Federal Regulation DD. It is also known as TISA.
The main of TISA is for the benefit of consumers. It allows consumers to compare interest rates and various other charges and terms and conditions of different depository institutions. This also promoted competition between various different depository institutions. TISA basically served as a guideline or framework to depository institutions on how to communicate about various deposit account options to the consumers, so that the consumers can judge which one is better for them in an easy and objective manner by comparing them or other criteria that consumer thinks might be useful.