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1. RATE INFORMATION
The Dividend Rate and Annual
Percentage Yield on your accounts are set forth on the Rates of Interest Page.
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 the frequency of
compounding for an annual period. For the fixed rate
accounts indicated on the rate page, the Dividend Rate and Annual
Percentage Yield are fixed and will be in effect for the
term of the account.
2. NATURE OF DIVIDENDS
Dividends are paid from current
income and available earnings after required transfers to
reserves. The Dividend Rate and APY are the prospective
rates and yields that the Credit Union anticipates paying
for the applicable dividend period.
3. COMPOUNDING AND CREDITING
Dividends will be
compounded and credited to the account using the method
indicated above. The dividend period advances from the
day the account is opened using the Dividend Period
referenced above until the account anniversary is reached.
4. ACCRUAL OF DIVIDENDS
Dividends will begin to accrue on all deposits
(cash and non cash) on the business day you make the deposit to your
account. If you close your certificate before accrued dividends are
credited, accrued dividends will be paid.
5. BALANCE INFORMATION
The minimum balance required to open each account
is set forth above. Dividends are calculated by the Daily Balance method
which applies a daily periodic rate to the principal in the account each day.
6. ACCOUNT LIMITATIONS
After your account is opened, you
may add funds to your account or make withdrawals of dividends
from your account in any amount as indicated above.
7. MATURITY
Your account will mature on the maturity date
set forth on your Account Receipt or Renewal Notice.
8. EARLY WITHDRAWAL PENALTY
There will be a penalty if you withdraw any
of the principal before the maturity date, or the renewal date, if this is a
renewal account.
9. AMOUNT OF PENALTY
For Certificates with a maturity
date of one year or less, the early withdrawal penalty on your account is 90
days of dividends earned. For Certificates with a maturity date of more
than one year the withdrawal penalty is 180 days of dividends earned.
10. EXCEPTIONS TO WITHDRAWAL PENALTY
A withdrawal penalty will not be charged when an account owner
dies or is declared to be legally incompetent by a court of law.
11. NOT TRANSFERABLE
Your Certificate is not transferable
except on the books of the Credit Union.
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