Common use of Daily Balance Method Clause in Contracts

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 General Terms and Condition Section of the Credit Union’s Membership Agreement, after a Term Account is opened, you may not make deposits into the account before maturity. You may not make withdrawals of dividends from your account before maturity unless at account opening you arrange for dividend payments, if allowed by the Credit Union. Maturity Date - Your account will mature on the date stated on your Certificate Receipt or any Renewal Notice the Credit Union provides to you. Early Withdrawal Penalties - We may impose a substantial penalty if you withdraw any of the principal before the maturity date, or the renewal date, if this is a renewable account. Amount of Penalty- Share Certificate: A substantial penalty is imposed if the certificate funds other than dividends are withdrawn before the maturity date. The penalty does not apply to any of the following early withdrawals: withdrawals subsequent to the death of any owner and withdrawals as a result of liquidation of the credit union. If the term of the certificate is less than one hundred eighty (180) days, the forfeiture is an amount equal to 1 month’s dividends, whether earned or not, calculated on the principal amount. If the term of the certificate is between one hundred eighty (180) days and three (3) years, the forfeiture is an amount equal to three (3) months’ dividends, whether earned or not, calculated on the principal amount; or if the term of the certificate is between three (3) and five (5) years, the forfeiture is an amount equal to six (6) months’ dividends, whether earned or not, calculated on the principal amount; or if the term of the certificate is five (5) years or more, the forfeiture is an amount equal to eighteen (18) months’ dividends, whether earned or not, calculated on the principal amount.