Truth In Savings Act & NCUA TISA Regulations

Question 1

T or F: TISA addresses all account lifecycles except closing?

Answer 1

True

Question 2

T or F: Credit unions must orally disclose account rates upon request?

Answer 2

False

Question 3

The two types of dividend calculation are?

Answer 3

Daily balance method and Average daily balance method

Question 4

Which dividend calculation method involves dividing the sum of the daily balances in the period by the number of days in the period?

Answer 4

The Average Daily Balance Method

Question 5

How do you calculate the daily balance method?

Answer 5

The CU applies a daily periodic rate to the exact daily balance in the account each day.

Question 6

T or F: Under TISA, dividends are essentially earnings to members?

Answer 6

True

Question 7

If a credit union verbally discloses account rates, how must the rate be stated?

Answer 7

APY

Question 8

T or F: The Annual Percentage Yield Earned must be included in the initial TISA account opening disclosures?

Answer 8

False, the APYE is only for statements. (Hence, EARNED)

Question 9

T or F: The TISA initial disclosures must be given to all owners of a joint account?

Answer 9

False, all disclosures can be given to just one owner.

Question 10

T or F: If the TISA disclosures are available electronically (via the CU’s website), the CU must first obtain the member’s consent to receive the disclosures electronically?

Answer 10

True

Question 11

T or F: Members must be able to access electronic disclosures before opening the account?

Answer 11

True

Question 12

T or F: The TISA clear and conspicuous standard for disclosures does not apply to TIS electronic disclosures?

Answer 12

False

Question 13

T or F: In account disclosures, how must the APY be disclosed?

Answer 13

Must be rounded to the nearest basis point, and disclosed two decimal places (4.55%)

Question 14

T or F: When opening a dividend-bearing term share account, the APY and dividend rate disclosed must be the rate that was offered on the date the account was opened?

Answer 14

True

Question 15

T or F: For ODP, TISA requires the transactions offered, fees, and time to repay be disclosed in marketing pieces?

Answer 15

True

Question 16

T or F: TISA does not require overdraft disclosures on ATM receipts?

Answer 16

True

Question 17

T or F: Members must be given the TISA disclosures each time they open an account?

Answer 17

False

Question 18

T or F: If a member requests the TISA disclosures by phone or mail, the CU has 10 days to send the member those disclosures?

Answer 18

True

Question 19

T or F: TISA mandates that CUs send periodic statements to all members with accounts?

Answer 19

False

Question 20

T or F: The change in terms notice required under the Truth in Savings rule does not apply to variable-rate accounts?

Answer 20

True

Question 21

T or F: TISA requires CUs to disclose rates in all account advertisements?

Answer 21

False

Question 22

T or F: When an advertisement mentions an APY, it must also disclose the period for which the APY is offered?

Answer 22

True

Question 23

T or F: The method used to decide minimum balance requirements is not part of the initial disclosures?

Answer 23

True

Question 24

T or F: TISA requires CUs to pay dividends on dormant accounts?

Answer 24

True

Question 25

T or F: A CU is required to disclose periodic and year-to-date overdraft fees & returned item fees in its periodic statements, whether it promotes the payment of overdrafts in advertising or not?

Answer 25

True (along with dividends and interest earned)