More About Certificate Accounts
* Important: Contact the HAPO financial center nearest you for current rate information or promotional special offerings. Rates may vary. Rates and APY (Annual Percentage Yield), are subject to change without notice.
** Bump-Your-Rate Certificate Program: Owner of the Certificate must contact HAPO Community Credit Union to request the one-time rate increase on Bump Certificate accounts. The rate on the Bump Certificate will be changed on the date HAPO Community Credit Union receives the request. The bump option can only be exercised once during the initial term of the Certificate, and does not increase the term of the certificate. The new interest will not be applied retroactively. Bump Certificates only available for IRA and Certificate accounts. Requires $5,000 minimum balance. Must be a HAPO Community Credit Union member to apply. No add-on deposits . A penalty may be imposed for early withdrawal. Rates effective March 3, 2015. Special limited time offer. All product rates and terms are subject to change without notice. Visit hapo.org or any HAPO location for complete details. Federally insured by NCUA.
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.
Certificate Account FeaturesAccount Limitations
After your account is opened, you may not make additional deposits to a Certificate account with the exception of "add-on" certificates noted above. You may make dividend withdrawals.Maturity
Your Certificate account will mature within the term set forth above 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 or IRA account before the maturity date.
- Amount of Penalty: For Certificate and IRA Certificate accounts, the amount of the withdrawal penalty is based on the penalty schedule:
- 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
- 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 stated 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 when an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
- Certificate accounts are automatically renewable accounts. At maturity, your account will renew for another term at the current Dividend Rate offered at that time.
- Renewal Notice. 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.
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.