Under TISA, what information must be communicated regarding early withdrawal penalties for time deposits?

Under the Truth in Savings Act (TISA), it is essential that financial institutions provide clear and specific information regarding early withdrawal penalties for time deposits. This includes detailing the specific penalties that will be assessed if a customer withdraws their funds before the maturity date of the deposit. Additionally, the calculations for determining these penalties should be included as well. This transparency is critical as it helps consumers understand the potential costs associated with accessing their funds prematurely, allowing them to make informed decisions about their investments.

Providing general risk of loss or only indicating a percentage of the investment lost does not fulfill the requirement for clear communication of penalties. Average penalty fees do not give the customer the necessary specifics to assess their individual situation accurately, making the detailed description of specific penalties and calculations vital for compliance with TISA regulations.