Daily Balance Method. For shares (savings) and money market accounts, dividends and minimum balances are calculated by the Daily Balance Method, which is determined by applying a daily periodic rate to the full amount of the balance in the account each day. Account Limitations - Limitations are set forth in the General Terms and Conditions Section of the Credit Union’s Membership Agreement. Additional Limitations for IRA Savings Accounts: You are solely responsible for complying with any requirements including transaction limitations and penalties for early withdrawal under the Internal Revenue Code or other applicable Federal or State law governing any IRA or other Credit Union accounts. Term Share Certificate Accounts (Share Certificate and IRA Certificate Accounts) Rate Information - The Dividend Rate and Annual Percentage Yield on your account are stated in the Credit Union’s Truth-In-Savings Rate Schedule and in your Term Share Certificate. The Annual Percentage Yield reflects the dividends to be paid on your account based on the dividend rate and the frequency of compounding for a fixed period. For Fixed Rate Certificate Accounts the dividend rate and annual percentage yield are fixed and will be in effect for the term of the account. The annual percentage yield assumes that dividends will remain on deposit until maturity. Any withdrawals will reduce your earnings. Nature of Dividends - Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Dividend Compounding and Crediting - Dividends will be compounded and credited as stated on your Certificate Receipt. The dividend period begins on the first calendar day of the period and ends on the last calendar day of the period. Accrual of Dividends - Dividends will begin to accrue on the business day we receive provisional credit for the deposit of noncash items (e.g. checks) to your account. Dividends will begin to accrue on cash deposits on the business day you make the deposit to your account. Once dividends are credited to a certificate account, it becomes principal. Balance Computation Information - The minimum balance required to open each account is set forth in the Credit Union’s Truth-In-Savings Rate Schedule. Dividends are calculated by the “Daily Balance Method”, which applies a daily periodic rate to the principle balance in the account each day. Transaction Limitations - In addition to any other applicable limitations described in the Gene...
Daily Balance Method. We may use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the “Collected Balance” in the account each day. Depositor – Any person who signs the Bank’s deposit account signature card. This includes each and every owner of the account and anyone else with authority to exercise control over the funds in the account. Item – Any instrument for the payment, transfer, or withdrawal of funds from an account, even though it may not be negotiable. Examples include checks, electronic transactions such as ACH and ATM withdrawals, drafts, automatic transfers, and online banking transfers. References to an “Item” include, without limitation, situations where a check or electronic transaction is re-presented or re-submitted (as well as situations where a check is converted into an electronic transaction and submitted for payment). This means one authorized check, electronic transaction, or other item could result in multiple fees if such Item is presented or submitted for payment multiple times.
Daily Balance Method. SECTION 1: DEFINITIONS (continued) The method by which interest is calculated by applying a periodic rate to the Collected Balance in your Account each day.
Daily Balance Method. For shares (savings) and money market accounts, dividends and minimum balances are calculated by the Daily Balance Method, which is determined by applying a daily periodic rate to the full amount of the balance in the account each day.
