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Certificates of
Deposit
Terms:
The minimum deposit for all certificates is
$1000.00, with terms of: 3 months; 6
months; 12 months; and 36 months.
Rate Information:
The term "dividend rate" means the
dividends paid on an account without the
effect of compounding previously earned
dividends. It is shown as an annual figure and
is expressed as a percentage of the balance. The
Annual Percentage Yield (APY)
means a percentage rate reflecting the total
amount of dividends paid on an account, based on
the dividend rate and the frequency of
compounding, for an annual period. The "Dividend
Rate" and "APY" are fixed and will remain
in effect for the entire term of the
certificate.
Nature of Dividends
Dividends
are paid from current income and available
earnings, after required transfers to reserves
at the end of each dividend period. Therefore,
the dividend rate and APY, at renewal, may be
higher or lower than the dividend rate and APY
that you are currently receiving.
Compounding and Crediting of Dividends
Dividends are compounded and credited at
maturity. The dividend period begins on the day
you open the certificate through the date of
maturity. Dividends are credited to the account
after the close of business on the maturity date
and are available for withdrawal on the next
business day.
Early Withdrawal Penalties
You
may not make partial withdrawals from your
certificate account before maturity. You may not
withdraw accrued dividends from the certificate
until they are actually credited to your account
at maturity. If you close the certificate before
maturity, the following penalty is charged
against the accrued interest only:
-
"90 days of interest or interest to date,
whichever is least". In other words, if you
close the certificate within 90 days of
purchase, you lose all interest. After 90
days, you lose the first 90 days only.
-
There is not a penalty for early withdrawal
if either the sole owner of the account dies
or is declared mentally incompetent by the
courts.
Maturity/Renewal Notice
You
will receive a maturity/renewal notice at least
30 days before your certificate matures.
Your certificate will automatically renew at
maturity unless you notify us, before maturity,
with different instructions. It will renew for
the same term at the current credit union rate
and APY for that type of certificate.
If you close your certificate after the maturity
date, you will only lose the dividends that have
accrued from the renewal date to the day you
withdraw the funds.
Your maturity notice will either include the
rate that you will receive at renewal, or, the
date the information will be available. You may
call any of the branch offices to find out the
renewal rate and APY information. Their
telephone numbers will be listed on the renewal
notice. |
