Truth in Savings Act*
- Requires financial institutions
to disclose the "Annual Percentage Yield," or "APY,"
on savings accounts. The APY tells you how much money you would earn
if you kept $100 in the account for one year.
- Requires that the institution credit your entire deposit instead of crediting a portion of your deposit or using a "low balance per month" method. This increases your earnings.
- Requires that institutions have available a list of their fees for bounced checks, stop payment orders, certified checks, wire transfers or similar items. Ask for the list.
- Prohibits institutions from advertising "free" checking if there are hidden charges or requirements, for example, having to maintain a minimum balance to qualify.
* Courtesy of The U.S. Office of Consumer Affairs
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