RATE AND FEE SCHEDULE
|EFFECTIVE DATE||MATURITY DATE|
|APRIL 1, 2009||12-MONTH CD|
|MINIMUM OPENING DEPOSIT||$1,000.00|
|DIVIDENDS CREDITED||AT MATURITY|
|Term||Dividend Rate||Annual Percentage Yield|
|Additional Deposits||Not Permitted|
|Withdrawals Prior to Maturity||Permitted with Penalty|
|Early Withdrawal Penalty||6-Months Interest|
TRUTH-IN-SAVINGS ACCOUNT DISCLOSURES
Except as specifically described, the following disclosures apply to all of the accounts
- Rate information. The Annual Percentage Rate 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. For 12-Month CD’s, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account.
- Nature of Dividends. Dividends are paid from current income and available earnings after the required transfer to reserves at the end of the period.
- Dividends Crediting. The crediting of dividends will happen on the date of maturity.
- Balance Information. The minimum balance requirements applicable to each account are set forth in the Rate Schedule for 12-Month CD’s. For CD’s, dividends are calculated by the Daily Balance method which applies a daily periodic rate to the principal in each account each day.
- Transaction Limitations. Transactions are not permitted on 12-Month CD’s after the opening deposit. Transactions occurring before the maturity date are subject to penalties as set forth in the Rate Schedule.
- Maturity. Your account will mature 12-months from the date that your CD was opened.
Early Withdrawal Penalty
We may impose a penalty if you withdraw any funds prior to the maturity date.
Amount of Penalty
For 12-Month CD’s, the penalty amount will be 6-months of interest, regardless of when the account was opened. If the transaction occurs within 6 months of the opening date, the penalty amount will result in the account balance being less than the amount when it was opened.
How the Penalty Works
The penalty is calculated as a forfeiture of dividends that have been, or would have been earned on the account. It applies whether the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.
Exceptions to early Withdrawal Penalties
At our option, we may pay the account before maturity without penalty under the following circumstances: 1. When an account owner dies or is determined legally incompetent by a court or other body of jurisdiction.
The renewal policy for your account is indicated on the reverse side. For 12-Month CD’s your account will automatically renew upon maturity. For 12-Month CD’s you have a grace period of ten (10) days from the maturity date to withdraw or deposit additional funds without being charged a penalty.
Nontransferable / Nonnegotiable
Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of the owner, except obligations with the Credit Union.