Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
This page is no longer active. Its content has expired or been rescinded by the FDIC.
Financial Institution Letter

Truth in Savings Act

SUBJECT: Federal Reserve Regulation DD (Truth in Savings)

The Federal Reserve Board has issued an official staff commentary that applies and interprets the requirements of Regulation DD - Truth in Savings. The commentary, which replaces individual staff interpretations, incorporates most of the guidance provided when the regulation was adopted and addresses additional questions raised since that time.

Attached is a copy of the staff commentary, which is effective February 6, 1995.

The official staff commentary clarifies, among other things, that:

  • Except for information about an existing account, commercial messages delivered via telephone or voice response machines are advertisements;

  • Institutions may consider accounts as "passbook savings" even when direct deposits are made to the account electronically;

  • A certificate of deposit (CD) permitting one or more rate adjustments prior to maturity at the consumer's option is a variable rate account;

  • New account disclosures are required when the consumer changes any account term required to be disclosed (and not merely the duration of the CD);

  • If an institution deems an account closed and treats accrued but uncredited interest as forfeited by the consumer, the institution must deem a new account to be opened when a deposit is subsequently accepted;

  • An Institution acquiring accounts through a merger or acquisition is not required to provide a new account disclosure;

  • Institutions may accrue interest on funds until the funds are withdrawn from the account; and

  • The imposition of fees for ATM access (including annual fees) does not preclude institutions from advertising accounts as free or no-cost.

If you have questions about Regulation DD or this commentary, please contact the staff of the Division of Compliance and Consumer Affairs in your Region (list attached).

Paul L. Sachtleben


Regional Offices

Federal Register (HTML format)

FEDERAL RESERVE press release

For immediate release August 3, 1994

The Federal Reserve Board today issued an official staff commentary to Regulation DD, Truth in Savings. The commentary applies and interprets the requirements of the regulation and is a substitute for individual staff interpretations. The commentary incorporates much of the guidance provided when the regulation was adopted, and addresses additional questions raised since that time.

The commentary is effective immediately, but compliance is optional until February 6, 1995.


Last Updated: February 6, 1995