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Truth-in-Savings Account Disclosure


The below info applies to certificates.


1. Rate Information.
The Dividend Rate and Annual Percentage Yield on your accounts 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 the term of the account. The Annual Percentage Yield is based on an assumption the dividends will remain on deposit until maturity. A withdrawal will reduce earnings. The Dividend Rate and the Annual Percentage Yield may change monthly as determined by the Credit Union's Board of Directors.

2. Nature of Dividends. Dividends are paid from current income and available earnings after providing for the required reserves. The Dividend Rates and Annual Percentage Yields are the prospective rates 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 last calendar day of each month. 

4. Balance Information. The minimum balance required to open each account is set forth above. Dividends and minimum balances are calculated by the Daily Balance method, which applies a daily periodic rate to the principal balance in the account each day.

5. Accrual of Dividends. Dividends will begin to accrue on cash deposits on the business day you make the deposit to your account. Dividends will begin to accrue on non-cash deposits (e.g. checks) on the business day you make the deposit to your account. Except for a Savings Certificate account, if you close your account before accrued dividends are credited, accrued dividends will not be paid.

6. a. Transaction Limitations: Standard Certificate: After your account is opened, you may not add funds to your account but you may make dividend withdrawals from your account in any amount as indicated above.
b. Transaction Limitations: Save-Up Certificate: After your account is opened, funds may be added to the certificate at any time for any amount. Dividend withdrawals may occur from your account as indicated above.

7. Maturity. Your account will mature within the term set forth above. The Credit Union will give the owner(s) at least 15 days’ notice prior to maturity.

8. Fixed Rate Accounts. The rate and yield will remain in effect for the entire term of the account. 
Early Withdrawal Penalty. We may impose a substantial penalty if you withdraw the principal before the maturity date, or the renewal date, if this is a renewal account. Partial withdrawals of principle are not permitted.
Amount of Penalty. The amount of the penalty will be equal to half of scheduled dividends to be paid during the term.
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.

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) If withdrawal occurs within ten (10) business days of Automatic Renewal Date.
(iii) Save Up Certificate Only: Down payment towards loan, such as mortgage or vehicle loan. 

Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure an obligation of owner, except obligations with the Credit Union.

The rates and yields appearing in the Rate Schedule are accurate and effective for the savings certificate accounts as of the date indicated on this form. If you have any questions or require current rate information on your account, please call TruChoice Federal Credit Union at (207) 772-0808.