AVERAGE DAILY BALANCE COMPUTATION METHOD -
Interest is
calculated by the average balance method which applies a periodic rate
to the average daily balance in the account for the 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. The period we use is monthly.
ACCRUAL OF INTEREST ON NONCASH DEPOSITS
- Interest will begin
to accrue on the business day you deposit noncash items (for example,
checks) to your account.
TRANSACTION LIMITATIONS
- You may make withdrawals of principal
from your account before maturity. Principal withdrawn before maturity
is included in the amount subject to early withdrawal penalty.
You can only withdraw
interest credited in the term before maturity of that term without
penalty. You can withdraw interest anytime during the term of crediting
after it is credited to your account. For example, the initial deposit
is $10,000. At maturity, $100 of interest is credited to the certificate
and the certificate is renewed for $10,000, you may withdraw $100
without penalty prior to the next maturity. Assuming no withdrawals are
made, at the next maturity $90 is credited to the $10,000 certificate
and renewed for $10,190. During this third term you may withdraw $90
without penalty; but, you may not withdraw the $100 interest compounded
in the second term without paying a penalty. This interest withdrawal
limitation does not apply if you have made arrangements to have interest
paid to you or to another account in lieu of having it credited to this
account.
EARLY WITHDRAWAL PENALTIES
- A penalty may be imposed for
withdrawals before maturity. We may require the maturity of the entire
certificate.
-
If
your account has an original maturity of up to 185 day the penalty
we may impose will equal 90 days interest on the amount withdrawn
subject to penalty.
-
If your
account has an original maturity of more than 185 days the penalty
we may impose will equal 180 days interest on the amount withdrawn
subject to penalty.
There are certain
circumstances, such as the death or incompetence of an owner, where we
may waive or reduce this penalty. See you plan disclosure if this
account is part of an IRA or other tax qualified plan.
For any account which earns
an interest rate that my vary from time to time during the term, the
interest rate we will use to calculated this early withdrawal penalty
will be the interest rate in effect at the time of the withdrawal.
WITHDRAWAL OF INTEREST PRIOR TO MATURITY
- The annual percentage yield (APY)
is based on an assumption that interest will remain in the account until
maturity. A withdrawal will reduce earnings.
AUTOMATICALLY RENEWABLE ACCOUNT
- This account will automatically
renew at maturity. You may prevent renewal if we receive written notice
from you before maturity of your intention not to renew or you withdraw
the funds in the account at maturity (or within the grace period
mentioned below, if any. We can prevent renewal if we mail notice to you
at least 30 calendar days before maturity. If either you or we prevent
renewal, your deposit will be placed in a dividend-bearing account.
You will have a grace
period of ten (10) calendar days after maturity to withdraw the funds
without being charged an early withdrawal penalty. Interest is not
earned on funds withdrawn during the grace period. If the certificate is
withdrawn during the ten (10) day grace period, only the certificate
amount is paid. Interest is not paid from the date of maturity until the
date withdrawn when withdrawn during the grace period.
