Savings Law

The Truth in Savings Act (Federal Reserve Regulation DD)

Regulation that necessitates financial institutions to reveal the following information on savings account plans they offer:

  • Fees on deposit accounts
  • The interest rate
  • Other terms and conditions

 The annual percent yield (APY), which is the percentage rate stating the total amount

of interest that would be received on a $100 deposit based on the annual rate and frequency

of compounding for a 365-day period. Truth in Savings defines the year as 365 days rather

than 360, 366, or some other number. This law eradicates confusion caused by the more

than eight million variations of interest calculation methods previously used by financial

institutions ( which I find astounding).

 The rule of 72

 

To resolve about how many years it will take to double

your money:

72 divided by

= Years to double investment

Interest rate

you can get

 

To establish the interest rate that will double your money in a set number of years:

72 divided by

= Interest rate required

Years to

double investment

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