More About IRA 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.
** Savings Certificate:
Annual Percentage Yield (APY) is a promotional limited time offer. The offered special rates are as of March 1, 2018
and are subject to change in the future without notice. This offer cannot be redeemed with any other Savings Certificate promotional specials. Rates valid on $5,000 minimum balance. A penalty may be imposed for early withdrawal. HAPO retains the right to validate all offers. Visit www.hapo.org for more information on terms and fees. Federally Insured by NCUA.
Except as described, the following disclosures apply to all of the accounts:
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.
Some certificates allow additional deposits to be made during the term. Please contact the credit union for additional information. The initial rate will remain in effect until time of maturity. No add-on deposits are allowed for Special Rate CD/IRA Offers.
IRA Account Features
After your account is opened, you may not make additional deposits to a Certificate account. For IRA Time Deposit accounts, after your account is opened you may make additional deposits to your account. You may make dividend withdrawals, subject to early withdrawal penalties.
Your Certificate or Time Deposit account will mature within the 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 Time Deposit account before the maturity date.
- Amount of Penalty - For IRA accounts, the amount of the early withdrawal penalty is based on the following 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
- For IRA Time Deposit 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 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 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 IRA account 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 IRA and the owner attains age 59 ½ or becomes disabled.
IRA certificates and Time Deposit 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 .
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.