1. Rate Information. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. The Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For accounts subject to dividend compounding, the Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.
3. Dividends Compounding and Crediting. The compounding and crediting of dividends applicable to each account is set forth in the Rate Schedule. The Dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period.
4. Balance Information. The minimum balance requirement applicable to the account is set forth in the Rate Schedule. Dividends are calculated by the Daily Balance method, which applies a daily periodic rate to the principal in the account each day.
5. Accrual of Dividends. Dividends will begin to accrue on non-cash deposits (e.g. checks) on the business day you make the deposit to your account.
6. Transaction Limitations. After your account is opened, your ability to make additional deposits to your account or withdrawals of dividends and any limitations on such transactions are set forth in the Rate Schedule.
7. Maturity. Your account will mature as indicated on this Rate and Fee Schedule or on your Account Receipt or Renewal Notice.
Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal before the maturity date. The effect of any withdrawal of the principal requires certificate account closure.
Amount of Penalty. The amount of the early withdrawal penalty is ninety (90) days dividends earned.
How the Penalty Works. The penalty is calculated as a forfeiture of dividends or a part of the dividends that have been paid or accrued on the account. If the certificate is closed prior to ninety (90) days from the opening date, dividends that have been paid or accrued on the account will be forfeited. If the dividends has already been paid and withdrawn from the account, the penalty will be deducted from the principal.
Exceptions to Early Withdrawal Penalty. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:
When an account holder dies or is determined legally incompetent by a court or other body of competent jurisdiction.
Renewal Policy. Your account will have the option to renew for another term up on maturity if the $25.00 minimum monthly deposit requirement has been met for the term of the certificate. You will have a grace period of ten (10) days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. However, if you close your certificate account on or before the 10th day of the grace period, accrued dividends will not be paid. For nonrenewable share certificates, the balance of your account will automatically transfer to your share account at maturity.
Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.