Rate information and interest: The above stated interest rate and APY will remain fixed until the maturity date. The APY assumes that interest will remain on deposit until maturity. A withdrawal of interest will reduce earnings. Interest begins to accrue no later than the next business day following the business day on which the funds were deposited.
Compounding and crediting: Interest on your account will be compounded quarterly and credited to your time deposit account on a quarterly basis.
Withdrawals: We will not permit partial withdrawals of principal during the term of the account. Withdrawal of the full account balance is permitted at maturity and during the grace period. Interest credited during a term can be withdrawn without penalty. The number of endorsements needed for withdrawal or any other purpose is one (1).
Early Withdrawal Penalty: If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. For time deposits of less than 12 months, the penalty will be an amount equal to 90 days interest on the amount withdrawn. For time deposits of 12 months or longer, the penalty will be an amount equal to nine (9) months interest on the amount withdrawn.
Renewal policy: The account will automatically renew at maturity for a time period determined by the Bank at account opening (unless we notify you, in writing, before a maturity date, of a different term for renewal). You must notify us before, or within a 10-calendar day grace period after, the maturity date if you do not want this account to automatically renew. Interest earned during one term that is not withdrawn during or immediately after that term is added to principal for the renewal term. The rate for each renewal term will be determined by us on or just before the maturity date.
A maturity notice will be sent to you prior to your maturity date with instructions on contacting us to learn about renewal rates.
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Primary Agreement: You agree to keep your funds with us in this account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without first obtaining our written consent. This account is void if the deposit is not immediately collected in full. We may change any term of this agreement. Rules governing changes in interest rates have been provided above. For other changes we will give you reasonable notice in writing or by any other method permitted by law.
If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address provided at account opening. You must notify us of any change in your address.
Withdrawals and Transfers. Only those of you listed as owners on the signature card may withdraw funds from this account. (In appropriate cases, a court appointed representative, a beneficiary of a trust or pay-on-death account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written above. This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. Unless otherwise specified in writing, only one endorsement is required to withdraw funds from this account.
These same rules apply to define the names and the number of you who can request our consent to a transfer.
Pledges. Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor, pay-on-death beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant’s rights in this account are subject first to the payment of the debt.
Ownership of Account and Beneficiary Designation. You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, specified in the application. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds.
Individual Account. Such an account is owned by one person.
Joint Account With Survivorship (And Not As Tenants In Common). Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common.
Joint Account – No Survivorship (As Tenants In Common). Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the number of endorsements necessary for withdrawal.
Pay-on-Death Account (Subject to this Agreement). If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating either of these account types reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time.
Set-Off. You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person’s or legal entity’s right to withdraw. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of set-off does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor’s right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off.
Balance Computation Method. 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.
Transaction Limitations. You cannot make additional deposits to this account during a term (other than credited interest). You cannot withdraw principal from this account without our consent except on or after maturity (within the grace period).
In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan.
