How often must a financial institution provide disclosures for annual percentage yield (APY) under TISA?

Financial institutions are required to provide disclosures for the Annual Percentage Yield (APY) under the Truth in Savings Act (TISA) on an annual basis. This requirement is in place to ensure that consumers are informed about the interest earned on their accounts and can easily compare the yields offered by different financial institutions.

The rationale for requiring annual disclosures is to promote transparency and help consumers make informed decisions regarding their savings options. Providing this information annually allows consumers to have a comprehensive view of the growth of their savings over a full year while simplifying the communication for financial institutions.

Other options do not align with the requirements set forth by TISA. Disclosing the APY monthly or quarterly would create a burden for institutions and might overwhelm consumers with frequently changing information that could lead to confusion regarding actual returns on their savings. Similarly, disclosing the APY only at account opening would not provide ongoing transparency about the interest being accrued over time, failing to meet the intent of helping consumers understand their savings.