The Truth in Savings Act ("TISA") applies to all insured depository institutions (as implemented by Regulation DD) and credit unions (as implemented by NCUA Rules Part 707) and imposes disclosure requirements designed to enable consumers to make informed decisions about deposit accounts. Regulation DD and Part 707 require disclosures about fees, annual percentage yield ("APY"), the methods of calculating the balance on which interest is paid, advertising, and other terms. Under Regulation DD and Part 707, a depository institution may not advertise deposit accounts in a way that is misleading or inaccurate or misrepresents the depository institution’s deposit contract. If an electronic advertisement displays a triggering term, such as ‘‘APY" or "bonus,’’ then Regulation DD and Part 707 require the advertisement to state certain information clearly, such as the minimum balance required to obtain the advertised APY or bonus.
TISA is applicable not only to situations where a customer has a positive deposit balances but also, for example, to situations where a customer has an overdraft on an account and is charged interest or other fees.