In terms of overdraft fees, what must be specified in the disclosures?

In the context of the Truth in Savings Act (TISA), the correct answer emphasizes the importance of transparency regarding overdraft fees. Financial institutions are required to disclose not just the total overdraft fee, but specifically the categories of transactions that could incur such fees. This ensures that consumers are fully aware of circumstances under which they could be charged for overdrawing their account, helping them to avoid unexpected charges.

Providing details about the different categories of transactions—such as ATM withdrawals, debit card purchases, or checks—gives consumers a clearer understanding of their account's functionality and any potential fees associated with overdrafts. This level of disclosure empowers consumers to make informed financial decisions regarding how they manage their accounts and engage in transactions.

While the other options highlight important aspects of overdraft protection and fees, they do not encompass the full scope of what is required for disclosures under the TISA. Awareness of where fees can be applied is crucial for consumers to effectively manage their finances and avoid penalties.