Truth-in-savings Act
Act passed by Congress in 1991, the purpose of which is to make it easier for consumers to compare deposit accounts among savings institutions (SI). Some of the act's more important provisions include: SI must pay interest on the full amount of a depositor's balance; SI must use a standardized formula for computing the annual percentage yield (APY). The APY is based on the interest rate and the method of compounding that interest; SI must disclose all fees imposed on checking, savings, money market, or Super NOW accounts as well as any other terms or restrictions. These disclosures are required before the account is opened, before automatic renewals, or upon the request of the savings customer. The savings institution must inform current savings account customers of the availability of the disclosures and include these disclosures with the savings customer's regular account statement; and SI must be in compliance with standardized rules concerning their promotional activities for advertising. All solicitations (whether in print, TV, radio, etc.) for savings deposits must state in a clear and conspicuous manner: annual percentage yield; period of time that the yield is in effect; minimum account balance required to earn the yield; minimum time period required to earn the yield; minimum amount required to open the account; interest penalty is required for early withdrawals; and the fact that fees may result in the reduction of the Annual Percentage Yield.
Popular Insurance Terms
Earnings by an insurance company from dividends on its equity portfolio, rent from real estate and other property it owns, and interest on its bond holdings. ...
Choice an employee can make of receiving higher private pension benefits prior to eligibility for Social Security, and lower pension benefits thereafter. For example, employees taking early ...
Ocean marine insurance covering one trip. Ocean marine insurance is written either for a specific time period or per trip. A voyage policy is usually written for cargo, whereas a time ...
Person who enters property without the right to do so. For liability purposes, it has been held that property owners are not responsible for trespassers as long as they do not intentionally ...
Time frame during which an annuitant makes premium payments to an insurance company. The obligations of the company to the annuitant during this period depend on whether a pure annuity or ...
Type of excess of loss reinsurance in which the insurance company (cedent) is guaranteed reinsurance for future covered losses once they exceed a specified amount on either a per loss, per ...
Classification at death of all pension plans, profit-sharing plans, individual retirement accounts (IRAS), annuities, and installment payments to the extent to which the deceased was ...
Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...
Sums payable to the winning plaintiff by the losing defendant in a court of law; can take any or all of these forms: general, punitive, and special. ...
Have a question or comment?
We're here to help.