What is the main purpose of TISA?

The primary purpose of the Truth in Savings Act (TISA) is to enable consumers to compare information about accounts. TISA mandates that depository institutions provide clear, consistent, and transparent disclosures about the terms and conditions of deposit accounts. This allows consumers to easily understand interest rates, fees, and other significant details, helping them make informed decisions when choosing financial products.

The act requires disclosure of annual percentage yields, minimum balance requirements, and other key account features, thereby supporting informed consumer choice and fostering competition among financial institutions. This focus on comparability is critical for consumers wanting to evaluate their banking options effectively.