An initial account disclosure is given to a member at the time a new term share (certificate) account is opened. If a member or potential member is not present at the account opening, the credit union will mail or deliver the disclosure the earlier of 20 calendar days after the account is opened or a related service is provided, whichever comes first.
1. Rate
The dividend rate and the APY are based on the assumption that dividends will be added to the principal
2. Compounding and crediting.
Dividends are compounded monthly and credited monthly to the certificate
3. Minimum balance requirements.
The minimum balance required to open the certificate is $1,000.00
4. Balance computation method.
Dividends are calculated using the daily balance method, which applies a daily periodic rate to the principal in the certificate each day
5. Accrual of dividends.
Dividends begin to accrue on the business day the member deposits cash and noncash items (e.g., checks) to the certificate
6. Transaction limitations.
After the certificate is opened the member can make no additional deposits or withdrawals until the maturity date stated on the certificate.
7. Maturity date.
The maturity date is disclosed on the certificate. If it falls on a weekend or holiday, the certificate will continue to accrue interest and will be redeemed/renewed on the following business day
8. Early withdrawal penalties.
The credit union will impose a penalty if the member withdraws any of the funds before the maturity date. The penalty will equal 90 days’ dividends on a six-month deposit, 180 days’ dividends on a one- or two-year deposit and 365 days of dividends for 3-, 4- or 5-year deposit.
9. Exceptions to Early Withdrawal Penalties.
At our option, we may pay the account before maturity without imposing an early withdrawal penalty if an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
10. Renewal policies.
The certificate account will not automatically renew at maturity. If the member has not notified us by or before the maturity date, we will redeem the certificate and put the money in regular shares.
11. Dividend period.
On this type of account, the dividend period of Southern Middlesex County Teachers FCU is monthly, beginning on the date the certificate is opened and ending on the stated maturity date, unless renewed.
12. National Credit Union Share Insurance Fund.
Accounts in this credit union are federally insured by the National Credit Union Share Insurance Fund.
