Rates and Interest
Rates and annual percentage yield (APY) are subject to change without notice. The annual percentage yield assumes that interest remains on deposit until maturity. An early withdrawal will reduce earnings. Please see the table for the minimum deposit required to open these accounts. You must maintain this minimum balance to earn the annual percentage yield. All available Certificates of Deposit (CDs) may be opened as an Individual Retirement Account (IRA). The stated interest rate is fixed for the term of the Certificate and will be paid until maturity. Interest may be paid by check or transfer to another account, at your option. You will forfeit any accrued interest that has not yet been credited to your account, if the account is closed prematurely. We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day. Interest begins to accrue on the business day you deposit any noncash item (for example, checks).
Deposits are accepted to all CDs during the grace period. Deposits during the term will only be accepted into the IRA 18 Month CD.
You may not withdraw any principal from this Certificate before maturity without our consent, which may be withheld; if we permit such a withdrawal, you may have to pay a penalty as follows: A) Where the original maturity of the account is one year or less, the penalty will be forfeiture of 90 days interest on the amount withdrawn, at the nominal (simple interest) rate in effect during the term. B) Where the original maturity of the account is more than one year, the penalty will be forfeiture of 180 days interest on the amount withdrawn at the nominal (simple interest) rate in effect during the term. C) If the withdrawal is within 6 days after the date of first deposit, a minimum of 7 days of interest will be charged as a penalty. You must withdraw funds within the grace period to avoid being charged a penalty. Fees could reduce the earnings on the account.
Early withdrawal penalty exception for IRA CDs are as follows: Customers age 72 or better may withdraw from any IRA CD at any time without penalty. Customers age 59 ½ or better may withdraw from the IRA 18 month CD with no penalty at any time as long as the withdrawal qualifies as a normal distribution.
Unless you notify us in writing before the maturity date, or within the grace period, Certificates of Deposit will automatically renew on the maturity date. The grace period is ten (10) calendar days for CDs with a term greater than 31 days and is three (3) calendar days for CDs with a term 31 days or less. We can prevent automatic renewal if we notify you in writing on or before the maturity date that we do not intend to renew the account. Promotional Certificate of Deposits may renew into a different term. If you close your CD during the grace period, no accrued interest will be paid after the maturity date. We send you a Maturity Notice prior to renewal. Please read it carefully. We may change the type, term or other feature of your bank CD by giving you notice. If we make a change, we tell you about the change in the Renewal Notice. See Deposit Account Agreement and Disclosures for terms and conditions.