Truth in Savings Act

Banking & Credit

The Truth in Savings Act (Regulation DD) requires depository institutions to disclose APY, minimum balance requirements, fees, and bonus/interest calculation methods on deposit accounts — and to use standardized terms so consumers can compare. It mandated the APY metric, which accounts for compounding (unlike simple APR). Banks must also disclose when promotional rates expire and what the standard rate will revert to. This act enables apples-to-apples comparisons of savings accounts, MMAs, and CDs across institutions. Always check the APY (not the interest rate) when shopping deposits, and read the fine print on tiered-rate accounts.