What does "effective date" refer to in the context of TISA?

The effective date, in the context of the Truth in Savings Act (TISA), refers specifically to the date when any changes to the terms of a deposit account take effect. This is an important concept within TISA, as it ensures that consumers are informed about when new terms, such as interest rates or fees, will begin to apply to their accounts.

Understanding the effective date empowers consumers to make informed decisions about their money, as they can anticipate how changes will impact their savings. Accurate disclosure of the effective date is essential for financial institutions to comply with TISA regulations and to maintain transparency with account holders regarding changes in account terms. This clarity helps in protecting consumer rights and ensuring they can manage their finances based on up-to-date information.