Truth in Savings Disclosure
1. Rate Information
The Dividend Rate and Annual Percentage Yield on your accounts as of the last Dividend Declaration Date, are set forth. 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 a 365 day period or the term of the Certificate Account or Christmas Club, assuming the funds remain on deposit for the period. A withdrawal will reduce earnings. Except for fixed rate accounts, the Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union’s Board of Directors. For fixed-rate accounts, the rate and yield will remain in effect for the entire term of the account.
2. Nature of Dividends
Dividends are paid from current income and available earnings after providing for the required reserves. In no event may dividends be paid in excess of available earnings.
3. Compounding and Crediting
Dividends will be compounded and credited as set forth on table. The Dividend Period for each account is set forth above. The Dividend Period begins on the first calendar day of each month and ends on the last calendar day of each month.
4. Accrual of Dividends
Dividends will begin to accrue on cash and non-cash deposits, e.g. share drafts/checks, on the business day you make the deposit to your account.
5. Balance Information
The minimum balance required to open each account is set forth. Dividends are calculated by the Daily Balance method which applies a daily periodic rate to the balance in the account each day. Minimum balances are also calculated using the daily balance method. Dividends paid on Money Management accounts are based on the daily balance in the account. If the daily balance in a Money Management account is less than $2,000.00; or the daily balance is at least $2,000.00, but less than $20,000.00; or $20,000.00 or more, the dividend rates and corresponding Annual Percentage Yields as disclosed would have been paid on the entire balance in the account as of the last dividend declaration date.
6. Account Limitations
Account limitations for each account are set forth. For a Share Savings account in which transfer limitations 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, and no more than three (3) of these six (6) transfers may be made by check, draft, or debit card to a third party. If you exceed these limitations, your account may be subject to a fee or be closed.
7. Term Accounts
Your certificate account will automatically renew at maturity. You will have a grace period of 10 days after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty. Your Christmas Club account will not automatically renew. Dividends will not be paid after maturity if the account is not renewed.