1. Rate Information. The Interest / Dividend Rate and the Annual Percentage Yield (APY) on your deposit accounts are stated on the Rate and Fee Schedule and may change at any time as determined by us. For all Certificates of Deposit Accounts, the Interest Rate and APY are fixed and will be in effect for the term of the Certificate account. The APY is a percentage rate that reflects the total amount of interest / dividends to be paid on an account based on the Interest / Dividend Rate and frequency of compounding for an annual period. The APY is based upon the assumption that interest / dividends will remain on deposit until maturity. A withdrawal of interest / dividends will reduce earnings. The Money Market account is a tiered-rate account. The Dividend Rate and APY on Money Market accounts depends on the Balance Range as set forth on the Rate and Fee Schedule. Once a Balance Range is reached, the Dividend Rate and APY for a Money Market account will apply to the full balance of that account.
2. Nature of Dividends. Dividends on Regular Shares are based upon the Credit Union’s current income and available earnings after transfer for required reserves at the end of a dividend period. The Dividend Rate and APY stated on the Rate and Fee Schedule are accurate as of the Effective Date and reflect the earnings the Credit Union anticipates having available for distribution.
3. Compounding and Crediting.
Regular Share Savings Accounts. Dividends will be compounded and credited quarterly. For this account type, the dividend period is quarterly, beginning on the first day of the calendar quarter and ending on the last day of the calendar quarter. Dividends are paid on the last day of the calendar quarter.
Checking Accounts and Money Market Accounts. Dividends will be compounded and credited monthly. For these account types, the dividend period is monthly, beginning on the first day of the month and ending on the last day of the month. Dividends are paid on the last day of each month.
Certificate of Deposit Accounts. Dividends will be compounded and credited quarterly. For this account type, the dividend period is quarterly, beginning on the opening day of the Certificate of Deposit and ending on the same day of the month three months later, and continuing this pattern until the maturity date of the Certificate of Deposit. Dividends are paid on the last day of each of these quarterly periods.
4. Balance Information. The minimum balance required to open each account and earn the APY is stated on the Rate and Fee Schedule. For all accounts, dividends and interest are calculated by the average daily balance method which applies a daily periodic rate to the average daily balance of principal in your account each day.
5. Accrual of Interest / Dividends. Dividends and interest will begin to accrue on the business day your deposit both cash and non-cash items (e.g. checks) to your account. If you close your deposit account (share account) before dividends are paid, you will not receive the accrued dividends.
6. Transaction Limitations. For Regular Shares and Money Market accounts transaction limitations will apply. No more than six (6) pre-authorized, automatic, or telephone transfers may be made from these accounts to another account of yours or to a third party in any month. If you exceed these limitations, your account may be subject to a fee as disclosed on the Rate and Fee Schedule.
7. Account Limitations. After your Certificate account is opened, you may not make additional deposits to the Certificate account.
8. Maturity. Your Certificate account will mature on the maturity date set forth on your certificate receipt or renewal notice.
9. Early Withdrawal Penalty. For Certificate accounts, we may impose a penalty if you withdraw any of the principal before the maturity date. If imposed, the penalty will be the equivalent of three months interest on the Certificate account. The penalty is calculated as a forfeiture of part of the interest that has been or would be earned on the amount withdrawn. It applies whether or not the interest has been earned. 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. We may pay the certificate account before maturity without imposing an early withdrawal penalty if: (1) the account owner dies, (2) the account owner is determined to be legally incompetent by a court, or (3) the certificate account is a Roth or Traditional IRA and the withdrawal is during the year the IRA owner turns age 70 ½ or any year thereafter.
10. Renewal Policy. Unless otherwise disclosed on your Certificate receipt, all Certificate accounts will automatically renew to interest rates in effect at the time of maturity for the applicable terms. You will have a grace period of ten (10) days after the maturity date to withdraw the funds in the Certificate account without being charged an early withdrawal penalty. Funds withdrawn from the Certificate account during this grace period will not be paid interest.
11. Nontransferable / nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation on an owner, except with the Credit Union.