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Certificate Account Disclosure |
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INITIAL ACCOUNT DISCLOSURE - CERTIFICATE ACCOUNTS |
The information and rates provided in this disclosure are accurate as of 5/16/2008. |
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ACCOUNT TERM |
MINIMUM DEPOSIT TO OPEN ACCOUNT |
MINIMUM BALANCE REQUIRED TO
OBTAIN APY |
DIVIDEND RATE |
ANNUAL PERCENTAGE YIELD (APY) |
COMPOUNDING
FREQUENCY |
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CERTIFICATE ACCOUNTS - AUTOMATIC RENEWALS ONLY
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| 30 to 59 Days ** |
$500 |
$500 |
1.70%
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1.71%
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Monthly |
| 60 to 89 Days
** |
1.81%
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1.83%
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** 30 TO 181 DAYS ARE NOT AVAILABLE ON NEW ACCOUNTS - RENEWALS ONLY
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CERTIFICATE ACCOUNTS
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| 6 months (182 to 364 days) |
$500 |
$500 |
2.23% |
2.25%
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Monthly |
| 12 months (365 to 719 days) |
2.47% |
2.50%
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| 24 months (720 to 1094 days) |
2.72% |
2.75%
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| 36 months (1095 to
1459 days) |
2.96% |
3.00%
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| 48 months (1460 to 1824 days) |
3.20% |
3.25%
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| 60 months (1825 or
more days) |
3.45% |
3.50%
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PROMOTIONAL CERTIFICATE ACCOUNTS
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To receive the 3.00% APY for 36 months, a minimum deposit of $10,000 is required. The 36-month One-time Bump Up Certificate allows you to exercise a one-time option to reset the rate on your certificate account. You can reset the rate to the rate offered on the regular term certificate equal to the remaining period on your certificate account, less 10 basis points. If the remaining term of your certificate falls between the terms of our regular certificate offerings, we will round to the closest regular term certificate based on the number of days elapsed.
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To receive the 3.60% APY for 60 months, a minimum deposit of $10,000 is required. The 60-month One-time Bump Up Certificate allows you to exercise a two-time option to reset the rate on your certificate account. You can reset the rate to the rate offered on the regular term certificate equal to the remaining period on your certificate account, less 10 basis points. If the remaining term of your certificate falls between the terms of our regular certificate offerings, we will round to the closest regular term certificate based on the number of days elapsed. After the first reset, you can again reset to the rate offered for the term equal to the remaining period on your certificate account, less 10 basis points, using the same rounding methodology. |
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RETIREMENT & CESA* CERTIFICATE ACCOUNTS
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| 12 months (365 to 719 days) |
$500 |
$500 |
2.47% |
2.50% |
Monthly |
| 24 months (720 to 1094 days) |
2.72% |
2.75% |
| 36 months (1095 to 1459 days) |
2.96% |
3.00% |
| 48 months (1460 to 1824 days) |
3.20% |
3.25% |
| 60 months (1825 or more days) |
3.45% |
3.50% |
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PROMOTIONAL RETIREMENT & CESA CERTIFICATE ACCOUNTS
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To receive the 3.00% APY for 36 months, a minimum deposit of $10,000 is required. The 36-month One-time Bump Up Certificate allows you to exercise a one-time option to reset the rate on your certificate account. You can reset the rate to the rate offered on the regular term certificate equal to the remaining period on your certificate account, less 10 basis points. If the remaining term of your certificate falls between the terms of our regular certificate offerings, we will round to the closest regular term certificate based on the number of days elapsed.
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To receive the 3.60% APY for 60 months, a minimum deposit of $10,000 is required. The 60-month One-time Bump Up Certificate allows you to exercise a two-time option to reset the rate on your certificate account. You can reset the rate to the rate offered on the regular term certificate equal to the remaining period on your certificate account, less 10 basis points. If the remaining term of your certificate falls between the terms of our regular certificate offerings, we will round to the closest regular term certificate based on the number of days elapsed. After the first reset, you can again reset to the rate offered for the term equal to the remaining period on your certificate account, less 10 basis points, using the same rounding methodology. |
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LADDERING CERTIFICATE ACCOUNTS** (INCLUDING IRA & CESA)
(Minimum investment is $50,000)
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| 12 months (365 to 719 days) |
$10,000 |
$50,000 |
2.57% |
2.60% |
Monthly |
| 24 months (720 to 1094 days) |
$10,000 |
2.81% |
2.85% |
| 36 months (1095 to 1459 days) |
$10,000 |
3.06% |
3.10% |
| 48 months (1460 to 1824 days) |
$10,000 |
3.30% |
3.35% |
| 60 months (1825 or more days) |
$10,000 |
3.54% |
3.60% |
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CERTIFICATE LADDERING
A minimum of $50,000 is required to establish a Certificate
Laddering Investment and receive the bonus rate at opening. Five
certificates for a minimum of $10,000 each will be established. (A
$10,000 one-year certificate, a $10,000 two-year certificate and so
on until the last $10,000 certificate is for a five-year term. As
each year’s certificate matures, it will automatically renew for
five-years, unless you notify us otherwise. This Certificate
Laddering Strategy assumes that as each certificate matures it is
re-invested for a five-year term, with the dividend rate and APY
associated with a five-year term certificate at that time. You may,
however, withdraw the funds upon maturity and not have it be
re-invested or notify us if you wish to elect a different term.
*Coverdell Education Savings Account.
Rate and Terms are subject to change without notice. Please
call 1-800-877-8328 to obtain current rate information.
NCUA-NCUA - Your savings federally insured to at least $100,000 and backed by the full faith and credit of the United States Government
This disclosure supplements your Membership Disclosure
Statement, Membership Card, and Certificate Account Agreement and
Receipt. Specific terms of your account(s) are included in your
receipt documenting the opening of your account(s). Please note that
we call our dividend-bearing term share accounts "Certificate
Accounts." Your periodic statement will give you current status such
as dividends earned. Please keep all these documents together for
your records.
MEMBERSHIP REQUIREMENT
You must open and maintain a $5 minimum balance in a Prime Share
Account before you can open any other account or obtain any service
from the Credit Union. Please refer to the Membership Disclosure
Statement.
DIVIDEND INFORMATION
Dividends begin to accrue on the day of deposit regardless of
whether the deposit is cash or non-cash, but do not accrue on the
date of withdrawal for the amount of the withdrawal.
Dividends are paid on a monthly basis on the first day of each month
following the dividend period. For example, the beginning date of
the first dividend period of the year is January 1, and the ending
date of the dividend period is January 31. The dividends would be
posted following the end of the dividend period, which for this
example would be February 1. This dividend and the resulting Annual
Percentage Yield Earned (APY Earned) in this example would appear on
the February statement. All other dividend periods follow this
pattern of dates.
Dividends are compounded monthly on a 365/365 basis, using the daily
balance method. The dividend rate is divided by 365 days a year to
determine the daily periodic rate. The daily periodic rate is then
calculated against the principal balance in the account each day. If
you close your account before dividends are credited, we may credit
these accrued dividends at the time you close your account.
ANNUAL PERCENTAGE YIELD (APY)
The Annual Percentage Yield (APY) is a percentage rate that measures
the total amount of dividends paid on an account based on the
dividend rate and the frequency of compounding for a twelve-month
period. The stated Annual Percentage Yield assumes that dividends
remain in the account until maturity. Withdrawal of dividends before
maturity will reduce earnings.
RENEWAL POLICY
A renewal
notice will be sent to your address of record thirty days in advance
of the maturity date. Unless we receive notification from you
before the end of the grace period, your Certificate Account will
automatically renew on the maturity date for a new term that will be
the same as the original term with the dividend rate adjusted at
each automatic renewal to the dividend rate being paid by the Credit
Union on that date for Certificate Accounts with similar terms and
balances. Please note, however, dividend rates and yields may not
yet have been determined, but will be determined on the date of
maturity. Please call 1-800-877-8328 or (707) 449-4000 to obtain
the rate(s) applicable on the maturity date of your Certificate
Account.
Promotional certificates
will automatically renew on the maturity date at the nearest
available term and dividend rate, not to exceed the term of the
original promotional certificate. For example; a 13-month
promotional certificate will renew for the term and corresponding
dividend rate of a 12-month certificate account. If the promotional
certificate is for a term of less than 6 months, it will
automatically renew on the maturity date at the 6-month term and
dividend rate.
Terms no Longer Offered.
Some certificate account products may be discontinued from time to
time. A renewal notice will be sent to your address of record
thirty days in advance of the maturity date. This notice will
advise you if the maturing certificate is for a term that will no
longer be offered. If you do not advise us of you decision
regarding the certificate and what term you elect, the certificate
will automatically renew on the maturity date at the nearest
available term and dividend rate, not to exceed the term of the
original certificate. For example; a 7-month certificate might
renew for the term and corresponding dividend rate of a 6-month
certificate account.
GRACE PERIOD
You have six (6) calendar days after the maturity date to withdraw
funds without a penalty or to change the terms of your Certificate
Account. However, your Certificate Account will not automatically
renew if you withdraw the funds in your Certificate Account after a
maturity date and within the six (6) calendar day grace period. If
you do withdraw funds during the grace period, Certificate Account
dividends will not be paid on those funds after maturity date. All
changes in terms will be effective dated to the maturity date, thus
if the changed term is for a shorter period with a corresponding
lower dividend rate, you will be paid the lower rate from the
maturity date.
TRANSACTION LIMITATIONS
You cannot make additional deposits to certificate accounts during
their term (other than credited dividends, if this election is made
at the time the account is opened). You cannot make withdrawals from
certificate accounts without penalties with the exception of
withdrawals that occur on, or within six days after the maturity
date. The minimum withdrawal amount is $500.
PROMOTIONAL STEP-UP CERTIFICATES
The Three-Year Promotional Step-Up Certificate allows
you to exercise a one-time option to reset the rate on your
certificate account. If during the initial term of your
certificate, the rates offered by the Credit Union increase,
you can reset the rate offered to the rate offered on the
regular term certificate equal to the remaining period on
your certificate account, less 10 basis points. If the
remaining term of your certificate falls between the terms
of our regular certificate offerings, we will round to the
closest regular term certificate based on the number of days
elapsed. For example: If the initial rate on the 3-year
step-up certificate was 3.00% and one year later we were to
offer a 2-year certificate (the time left on your step-up
certificate) at 3.50%, and you exercised your option, we
would reset your rate to 3.40% for the final two years. The
terms of this promotion do not apply to any existing step-up
certificates. Upon maturity, your certificate will renew
according to the above renewal policy as a regular
certificate account and will no longer include the step-up
rate feature.The Five-Year
Promotional Step-Up Certificate allows you to exercise a
two-time option to reset the rate on your certificate
account. If during the initial term of your certificate,
the rates offered by the Credit Union increase, you can
reset the rate offered to the rate offered on the regular
term certificate equal to the remaining period on your
certificate account, less 10 basis points. If the remaining
term of your certificate falls between the terms of our
regular certificate offerings, we will round to the closest
regular term certificate based on the number of days
elapsed. After reset, if the rates offered again increase,
you can again reset the rate offered for the term equal to
the remaining period on your certificate account, less 10
basis points, using the same rounding methodology.
For example: If the initial
rate on the 60-month promotional step-up certificate was
3.60% and one year later we were to offer a 48-month
certificate (the time left on your step-up certificate) at
4.00%, and you exercised your option, we would reset your
rate to 3.90% for the final four years. Then if one year
later we were to offer a 36-month certificate (the time left
on your step-up certificate) at 4.20%, and you exercised
your option, we would reset your rate to 4.10% for the final
three years.
The terms of this promotion
do not apply to any existing step-up certificates. Upon
maturity, your certificate will renew according to the above
renewal policy as a regular certificate account and will no
longer include the step-up rate feature.
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STATEMENTS
Statements are mailed to your address of record. For this reason,
always keep the Credit Union informed if your mailing address
changes. If you only have a Share Account and a Certificate
Account, you will receive a statement at least once each calendar
quarter. You will only receive a monthly statement when ATM,
Electronic Transfer or Call-24 activity has occurred. If you have an
active Share Draft (Checking) Account, you will automatically
receive a statement each month, even if no ATM, Electronic Transfer
or Call-24 activity has occurred. Statements are mailed at the
convenience of the Credit Union, usually near the beginning of the
month. If you would like a statement prior to the time one is
normally furnished, you can request a printout of account history
from the branch. The charge for this special printout service is
listed in the Schedule of Fees and Charges.
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EARLY WITHDRAWAL PENALTY
Penalties are deducted whether or not the
dividend has been earned, and may result in a reduction in the
principal balance. The penalty will also result in a lower APY.
MINIMUM PENALTY: We will impose a penalty if you
withdraw any of the funds in your certificate account before the
maturity date. A minimum withdrawal penalty will be deducted
from your Certificate at the time of any
withdrawal from the account within six (6) calendar days from
the date the account is opened, or within six (6) calendar days
of an earlier withdrawal, or as stated under Replacement Cost
Penalty below.
STANDARD PENALTY: The early withdrawal penalty
will be equal to the greater of the dividends earned on the
account balance over a seven day period or the amount calculated
as specified below--whichever is greater:
For terms of 30 to 181 days: The penalty will be equal to
the greater of the dividends earned on the account balance over
a seven (7) day period or an amount equal to 30 days' dividends
on the amount withdrawn.
For terms of 182 days to 12 months: The penalty will be
equal to the greater of the dividends earned on the account
balance over a seven (7) day period or an amount equal to 90
days' dividends on the amount withdrawn.
For terms of 12 months or more: The penalty will be equal
to the greater of the dividends earned on the account balance
over a seven (7) day period or an amount equal to 180 days'
dividends on the amount withdrawn.
REPLACEMENT COST PENALTY:
In a rising
rate environment, the replacement cost penalty method may be
used.
The replacement cost penalty is the dividend amount the
withdrawn funds would have earned for the remainder of the term,
based upon the dividend rate variance. The dividend rate
variance is the difference between the rate currently being paid
on your certificate account, and the rate we would pay on a new
certificate with a term equal to the time remaining on your
account. If, on the date of withdrawal, the rate we would pay on
a new certificate is less than the rate on your original
certificate, or we do not offer a term to match the term
remaining on your current account, then the minimum penalty
(above) will be calculated along with the standard penalty and
you will be charged whichever is greater.
WAIVER OF PENALTIES: The penalties will be waived
if the withdrawal is made: (a) after the death of the
member-owner of the Share Certificate; (b) for any other reason
which the law establishes as a valid condition for the waiver of
a early withdrawal penalty, (c) on the basis of any permissible
early distribution of an IRA recognized by federal law; (d) as
an incident of the liquidation of the Credit Union; or, (e)
after the failure of the Credit Union to pay a dividend within
10 days after the agreed date. |
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