What is the primary purpose of the Truth in Savings Act?

The primary purpose of the Truth in Savings Act is to ensure transparency in the terms and conditions of deposit accounts. This legislation requires financial institutions to provide clear and concise information about interest rates, annual percentage yields, and any fees associated with deposit accounts. The objective is to help consumers make informed decisions by allowing them to compare the features of different accounts easily. By mandating disclosures that clearly outline the terms of interest calculations, fees, and other account features, the Act empowers consumers to understand what they are agreeing to when opening a savings account. This transparency ultimately promotes fair competition among financial institutions and helps consumers make choices that best suit their financial needs.