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 EFFECTIVE 4-28-08 CERTIFICATE RATES
TRUTH IN SAVINGS ACCOUNT DISCLOSURE Except as specifically described, the following disclosures apply to all the above accounts. 1. Rate Information. The Dividend Rate and Annual Percentage Yield on your accounts as of the last Dividend Declaration Date are set forth above. 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. The Dividend Rate and Annual percentage Yield are fixed and will be in effect for the term of the account. The Annual Percentage Yield is based on an assumption the dividends will remain in the account until maturity. A withdrawal will reduce earnings. 2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. The Dividend Rates and Annual Percentage Yields 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 as set forth above. 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 lst calendar day of each month. 4. Balance Information. The minimum balance required to open each account is set forth above. 5. Accrual of Dividends. Dividends will begin to accrue on cash deposits and non-cash deposits (e.g. checks) on the business day you make the deposit to your account. 6. Transaction Limitations. After your account is opened, you may withdraw dividends after they are credited to your account. 7. Maturity. Your account will mature within the term set forth above or the maturity date set forth on your Certificate of Maturity Notice. The credit union will give the owner(s) at least 20 days’ notice prior to maturity. Early Withdrawal Penalty. We may impose a substantial penalty if you withdraw any principal before the maturity date, or the renewal date, if this is a renewal account. Amount of Penalty. For certificates with maturities of over 1 year, the penalty on your account is 182 days of dividends and for certificates with maturities or 1 year or less, the penalty is 91 days of dividends. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account. It applies whether or not 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. Exception to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: · When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. · Where the account is an Individual Retirement Account (IRA) and any portion is paid within (7) seven days after establishment; or where the account is a Keogh Plan provided that the depositor forfeits an amount of at least equal to the simple dividends earned in the amount withdrawn. Renewal Policy. Your account is an automatically renewable account, if indicated on the inside. Nontransferable/Nonnegotiable. Your account is nontransferable/nonnegotiable. The funds in your account may not be pledged to secure an obligation or owner, except obligations with the Credit Union. The rates and yields appearing in this Rate Schedule are accurate and effective for accounts as of the date indicated on the inside. If you have any questions or require current rate information on your accounts, please call Brewer Federal Credit Union at 207-989-7240 |
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