Is it mandatory for banks to disclose the method of interest calculation?

Under the Truth in Savings Act (TISA), banks are indeed required to disclose the method used to calculate interest on deposit accounts. This is crucial because it ensures transparency for consumers, allowing them to understand how their interest earnings are computed. By providing this information, banks help customers make informed decisions about their savings options. The requirement applies universally, not limited to specific account sizes or types, ensuring that all consumers have access to clear and consistent information regarding their interest rates and calculations. This transparency is a fundamental principle of the TISA, aimed at protecting consumers and fostering a competitive banking environment.