Conclusion: Truth in Savings

The Truth-in-Savings Act applies to accounts held by or offered to consumers at banks and savings associations, and members at credit unions. (Banks and savings associations are subject to Regulation DD; credit unions are subject to Part 707, which is substantially similar to Regulation DD.)

Your account opening responsibility is to supply the consumer or member with an account disclosure before the account is opened, before a service is provided, or before a fee is imposed, whichever is earliest. The disclosure must be in a form the consumer or member may keep. It must contain disclosures dealing with seven groups of information: (1) interest rate and yield information, (2) compounding and crediting frequency,(3) balance information, (4) fees, (5) transaction limits, (6) time and term share account information, and (7) bonus information. Most credit unions must also make a disclosure concerning the nature of dividends.

An institution that fails to meet the account opening requirements could be subject to both administrative and civil liability.

The Truth-in-Savings Act can be found at 12 USC 4301 et seq. Regulation DD can be found at 12 CFR 1030.1 et seq. Part 707 can be found at 12 CFR 707.1 et seq.