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Truth In Savings
- Rate Information - For Savings accounts, the Dividend
Rate and Annual Percentage Yield may change monthly as determined by the
Credit Union. Savings accounts are tiered rate accounts with the Dividend
Rate based on the balance ranges set forth above. Once a balance range
is met, the Dividend Rate for that balance range will apply to the entire
average daily account balance.
- Nature of Dividends - For Regular Savings accounts, dividends are paid
from current income and available earnings after required transfers to
reserves at the end of a dividend period. The Dividend Rate and Annual
Percentage Yield set forth above are the prospective rates that the Credit
Union anticipates paying for the applicable dividend period.
- Compounding and Crediting - For dividend bearing accounts, the Dividend Period
begins on the first calendar day of the dividend period and ends on the
last calendar day of the dividend period as set forth above.
- Accrual of Dividends/Interest - Dividends will begin to accrue on noncash
deposits (e.g. checks) on the business day you make the deposit to your
account. For Savings accounts, if you close your account before accrued
dividends are credited; accrued dividends will not be paid.
- Balance Information - For all accounts, dividends are calculated by the average
daily balance method. Dividends are calculated by applying a periodic rate
to the average daily balance in the account for the Dividend Period.
Adding the full amount of principal in the account for each day of the period
and dividing that figure by the number of days in the period determines the
average daily balance. For certain accounts, there is a minimum balance
requirement to avoid a service fee. In the event you do
not maintain the minimum required balance as set above, you may not earn
dividends or you may be assessed a service fee as set forth on the Fee Schedule.
- Transaction Limitations - For all Savings accounts, transaction limitations
will apply. No more than six (6) preauthorized, automatic, telephone or internet transfers
may be made from these accounts to another account of yours or to a third
party in any calendar month. Of these six (6) transfers, you may not make
and we will not clear more than three (3) transfers by check, draft, or
debit card to a third party. If you exceed these limitations, your accounts
may be subject to a fee or be closed.
- Rate
Information - For Fixed Rate Certificate accounts, the Dividend
Rate and Annual Percentage Yield are fixed and will be in effect for the
initial term and reset for any renewal term of the account. For Adjustable
Rate Certificate accounts, you have a one time option to adjust the rate
during the term. The initial Dividend Rate will remain fixed from the time
you open the account until you elect to adjust the rate. The Adjustable
Dividend Rate is the Dividend Rate being paid for new Certificate accounts
of the same class at the same time the adjustment is made. For all Certificate
accounts, the Annual Percentage Yield is based on an assumption that interest
will remain on deposit until maturity. A withdrawal of dividends will reduce
earnings.
- Nature of Dividends - The Dividend Rate and Annual Percentage Yield
are the prospective rates that the Credit Union anticipates
paying for the applicable dividend period.
- Balance Information - For all accounts, dividends are calculated by the average
daily balance method. Dividends are calculated by applying a periodic rate
to the average daily balance in the account for the dividend period. Adding
the full amount of principal in the account for each day of the period
and dividing that figure by the number of days in the period determine
the average daily balance.
- Add-on Feature - Add-on limited to Certificate terms
of 6 and 12 months. Additions to the add-on CD’s must be at least
$100.00. The initial rate will remain in effect until time of maturity.
- Certificate Account Features
- Account Limitations: After your account is opened, you may not make additional
deposits to a Certificate account, except IRA Time Certificates. For Fixed
Rate IRA Certificate accounts, after your account is opened you may make
additional deposits to your account. You may make dividend withdrawals, subject
to early withdrawal penalties.
- Maturity: Your Certificate or IRA account will mature within the term
or maturity date set forth on your Account Receipt or Renewal Notice.
- Early Withdrawal Penalty: We may impose a penalty if you withdraw any of
the principal of your Certificate of IRA account before the maturity date.
- Amount of Penalty - For Certificate and IRA Certificate accounts,
the amount of the early withdrawal penalty is based on the following
penalty schedule:
- Withdrawals Penalty
- Terms 1 year and under 90 days dividends
- Terms after 1 year 90 days dividends
- Terms 2 years and over 120 days dividends
- For IRA accounts, the amount of the early withdrawal penalty is 90 days dividends.
- How the Penalty Works - The penalty is calculated as a forfeiture
of part of the interest that has been or would be earned at the
nominal rate on the account. It applies whether or not the interest
has been earned. In other words, if the account has not yet earned
enough interest or if the interest has already been paid; the penalty
will be deducted from the principal. The penalty will be based
on the account balance on the day of your withdrawal.
- Exceptions to Early Withdrawal Penalties. At our option, we may pay the account
before maturity without imposing an early withdrawal penalty under the Following
circumstances:
1. When an account owner dies or is determined legally incompetent by a court
or other body of competent jurisdiction.
2. Where the account is an Individual Retirement Account (IRA)
and any portion is paid within seven (7) days after establishment;
provided that the depositor forfeits an amount of at least
equal to the simple interest earned in the amount withdrawn;
or where the account is a Time Deposit-Variable Rate IRA and
the owner attains age 59 ½ or
becomes disabled.
- Renewal Policy - Certificate and IRA accounts are automatically
renewable accounts. At maturity, your account will renew for anther
term at the current Dividend Rate offered at that time. You may
call the Credit Union at maturity to obtain the Dividend Rate and
Annual Percentage Yield for the renewal term. You have a grace
period of ten (10) business days after maturity in which to withdrawal
funds in the account without being charged an early withdrawal
penalty .
- Nontransferable/Nonnegotiable - Your account
is nontransferable and nonnegotiable. The funds in your account
may not be pledged to secure any obligation of any owner, except
obligations within the Credit Union.
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