Except as described, the following disclosures apply to all of the accounts:
The Dividend Rate and Annual Percentage Yield on your accounts are set forth above. 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 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 set forth above are the prospective rates that the Credit Union anticipates paying for the applicable dividend period.
Compounding and Crediting
Dividends will be compounded and credited quarterly and at maturity. 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.
The minimum balance required to open each account is set forth above.
The 6 month through the
12 month certificates allow additional deposits in increments of $100.00 or more through the term of the certificate. No more than $100,000.00 may be added to the certificate after the initial purchase. No add-on deposits are allowed for Special
Rate CD Offers.
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 of 6 month or less - 90 days dividends
- Terms of 12-18 months – 120 days dividends
- Terms of 24-36 months – 180 days dividends
- Terms of 48 months – 270 days dividends
- Terms of 60 months or more - 365 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 another 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.