What does TISA establish regarding interest rate changes?

The Truth in Savings Act (TISA) requires financial institutions to inform consumers about interest rate changes in a timely manner. This transparency is essential for helping consumers make informed decisions regarding their accounts and financial planning. By mandating that consumers are notified before any changes to interest rates, TISA aims to promote trust and accountability within the banking system, ensuring that consumers understand how such changes might impact their savings or investment returns.

This requirement for prior notification allows consumers to assess whether they want to keep their money in the current institution, potentially prompting them to consider alternatives if they believe the new rates are unfavorable. Overall, this provision underscores the significance of clear communication between financial institutions and their customers as part of fostering a fair banking environment.