I. SHARE SAVINGS ACCOUNTS AND CHECKING ACCOUNTS – Except as specifically described, the following disclosures apply to all of the accounts. All accounts described in this Truth-in-Savings Disclosure are share accounts.
- RATE INFORMATION – 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 an annual period. For all accounts, the Dividend Rate and Annual Percentage Yield may change quarterly as determined by the Credit Union’s Board of Directors. The Dividend Rates and Annual Percentage Yields are the rates and yield as of the last dividend declaration date, which is set forth in the Rate Schedule.
- NATURE OF DIVIDENDS – Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.
- DIVIDEND COMPOUNDING AND CREDITING – The compounding and crediting frequency of dividends and dividend period applicable to each account are stated in the Rate Schedule. The Dividend Period is the period of time at the end of which an account earns dividend credit. The Dividend Period begins on the first calendar day of the period and ends on the last calendar day of the period.
- ACCRUAL OF DIVIDENDS – For all accounts, dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, you will not receive the accrued dividends. However, for Christmas Club accounts, any accrued dividends will be paid if you close the account within seven (7) days of the date you open it.
- BALANCE INFORMATION – To open any account, you must deposit or already have on deposit at least the par value of one full share in a Share account. The par value amount is stated in the Fee Schedule. Some accounts may have additional minimum opening deposit requirements. The minimum balance requirements applicable to each account are stated in the Rate Schedule. For accounts using the Average Daily Balance method as stated on the Rate Schedule, dividends are calculated by applying a periodic rate to the Average Daily Balance in the account for the dividend period. The Average Daily Balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.
- ACCOUNT LIMITATIONS – For Share accounts, no more than six (6) pre-authorized, automatic, or telephone transfers may be made from each account to another account or to a third party in any month. If you exceed these limitations, your account may be subject to a fee or be closed. For IRA accounts, you may not make any pre-authorized, automatic or telephone transfers from your account to another account of yours or to a third party at any time. For Christmas Club accounts, the entire balance will be transferred to another account of yours on or after November 1st and the account will remain open. You may not make withdrawals from your Christmas Club accounts at any other time. If you wish to access the funds in your Christmas Club accounts, you may close it. If you close your Christmas Club accounts, you will be charged a fee of all accrued, uncredited dividends. However, no fee will be charged if the withdrawal occurs within seven (7) days of the date the account is opened. For Checking accounts, no account limitations apply.
- FEE FOR OVERDRAWING ACCOUNTS – Fees for overdrawing your account may be imposed on each check, draft, item, ATM card withdrawal, debit card withdrawal, debit card point of purchase, (if member has consented to overdraft protection plan for ATM and one-time debit card transactions), preauthorized automatic debit, telephone initiated withdrawal or any other electronic withdrawal of transfer transaction that is drawn on an insufficient available account balance. The entire balance in your account may not be available for withdrawal, transfer or paying a check, draft or item. You may consult the Funds Availability Policy for information regarding the availability of funds in your account. Fees for overdrawing your account may be imposed for each overdraft, regardless of whether we pay or return the draft, item or transaction. If we have approved an overdraft protection limit for your account, such fees may reduce your approved limit. Please refer to the Fee Schedule for current fee information.For ATM and one-time debit card transactions, you must consent to the Credit Union’s overdraft protection plan in order for the transaction amount to be covered under the plan. Without your consent, the Credit Union may not authorize and pay an ATM or one-time debit card transaction that will result in insufficient funds in your account. Services and fees for overdrafts are shown in the document the Credit Union uses to capture the member’s opt-in-choice for overdraft protection and the Schedule of Fees and Charges.
II. CERTIFICATE ACCOUNTS – Except as specifically described, the following disclosures apply to all of the accounts.
- RATE INFORMATION – The Annual Percentage Yield is a percentage rate that reflects the total amount of interest to be paid on an account based on the interest rate and frequency of compounding for an annual period. For all accounts, the Interest Rate and Annual Percentage Yield are fixed and will be in effect for the initial term of the account. For accounts subject to Interest compounding, the Annual Percentage Yield is based on an assumption that interest will remain on deposit until maturity. A withdrawal of interest will reduce earnings.
- INTEREST COMPOUNDING AND CREDITING – The compounding and crediting frequency of interest applicable to each account is stated in the Rate Schedule.
- BALANCE INFORMATION – The minimum balance requirements applicable to each account are set forth in the Rate Schedule. To open any account, you must deposit or already have on deposit at least the par value of one full share in a Share account. The par value amount is stated in the Fee Schedule. Some accounts may have additional minimum opening deposit requirements. For Certificate of Deposit accounts, interest is calculated by the Daily Balance method, which applies a periodic rate to the balance in the account each day.
- ACCRUAL OF INTEREST – For Certificate of Deposit accounts, interest will begin to accrue on noncash (e.g. checks) on the business day you make the deposit to your account.
- TRANSACTION LIMITATIONS – For Certificate of Deposit accounts, after your account is opened you may make withdrawals subject to the early withdrawal penalties stated below.
- MATURITY – Your account will mature as stated on this Truth-in-Savings Disclosure or on your Account Receipt or Renewal Notice.
EARLY WITHDRAWAL PENALTY – We may impose a penalty if you withdraw from your account before the maturity date.
AMOUNT OF PENALTY – For Certificate of Deposit accounts, the amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows:
- Terms of less than 12 months 90 days’ interest
- Terms of 12 months or greater 180 days’ interest
HOW THE PENALTY WORKS – The penalty is calculated as a forfeiture of part of the interest that has been or would be earned on the account. It applies whether or not the interest has been earned. In other words, 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.
EXCEPTIONS TO EARLY WITHDRAWAL PENALTIES – At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:
(i) When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
(ii) Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after the establishment; or where the account is a Keogh Plan (Keogh) provided that the depositor forfeits an amount of at least equal to the simple interest earned in the amount withdrawn; or where the account is an IRA or Keogh and the owner attains age 59½ or becomes disabled.
RENEWAL POLICY – The renewal policy you have chosen for your account is indicated on your certificate. For accounts that automatically renew, you have a grace period of ten (10) days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. For accounts that do not automatically renew, you will not be paid dividends on the account after the maturity date. Upon maturity, the account balance will be transferred to your Share account.
NONTRANSFERABLE/NONNEGOTIABLE – Your account is nontransferable and nonnegotiable.