Truth in Savings
Savings, Checking, Money Market Accounts
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.
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.
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.
Certificate, IRA, Time Deposit 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 are the prospective rates that the Credit Union anticipates paying for the applicable dividend period.
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 limited to Certificate terms of 6 and 12 months. Additions to the add-on CD’s must be at least $100.00. No more than $100,000.00 may be added to the certificate after the initial purchase. 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:
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.
- 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:
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.
- Amount of Penalty - For Certificate and IRA Certificate accounts, the amount of the early withdrawal penalty is based on the following penalty schedule: