What are the timing requirements for subsequent disclosures of time accounts?

The timing requirements for subsequent disclosures of time accounts, as stipulated by the Truth in Savings Act, indicate that financial institutions must provide a notice to account holders at least 30 calendar days before the maturity date of the account or 20 days before the grace period ends. This is essential for ensuring that consumers are adequately informed about their options as the maturity date approaches, including any potential changes in interest rates or account terms.

This required notification period allows consumers enough time to make informed decisions about whether to withdraw funds, renew the account, or transfer to another account without incurring any penalties. The rationale behind this specific timing is to promote transparency and enable better financial planning for account holders. By providing this notice, institutions fulfill their obligation to keep consumers well-informed about important account details and changes.