Certificates

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 are fixed and will be in effect for the initial term of the account. For accounts subject to dividend compounding, the annual percentage yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.

Divdend Period: For each account, the dividend period is the account’s term. The dividend period begins on the first day of the term and ends on the maturity date.

Dividend Compounding and Crediting: Dividends will be credited the last day of the month for the amount earned during the month and compounded monthly. At your option, you may choose to have dividends credited to your certificate account, paid to you by check or transferred to another account of yours. If you elect to have dividends paid to you by check or transferred to another account, compounding will not apply. If the certificate is closed before accrued dividends have been credited, accrued dividends will not be paid.

Balance Information: To open any account, you must deposit or already have on deposit the minimum required share(s) in a Primary Savings account. Some accounts may have additional minimum opening deposit requirements. For all accounts, dividends are calculated by the daily balance method which applies a daily periodic rate to the principal in the account each day.

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, accrued dividends will not be paid.

Transaction Limits: Additional funds may not be added to a certificate except at maturity. With the exception of earned interest, funds cannot be withdrawn without incurring a penalty and certificate account closure.

Maturity: Your account will mature as stated on your Account Receipt and Renewal Notice.

Early Withdrawl Penalty: We may impose a penalty if you withdraw funds from your account before the maturity date.

1. Amount of Penalty. For Jumbo Certificate of Deposit accounts, the amount of the early withdrawal penalty for your account is 90 days’ dividends. For Certificate of Deposit and Individual Retirement Account (IRA) Certificate accounts, the amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows: Terms of 1 year or less- 90 days’ loss of dividends Terms greater than 1 year- 180 days’ loss of dividends
2. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be 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 dividends have already been paid, the penalty will be deducted from the principal.
3. 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 of the account; or where the account is a Keogh Plan (Keogh), provided that the depositor forfeits an amount at least equal to the simple dividends 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: All certificates, except Jumbo certificates, will automatically renew at the end of the term. For accounts that automatically renew for another term, you have a grace period of 10 days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. You will not be paid dividends on the account after the maturity date. For accounts that do not automatically renew for another term, the account balance will be transferred to another account of yours upon maturity.

NONTRANSFERABLE/NONNEGOTIABLE: Your account is nontransferable and nonnegotiable.