Common use of Dividend Period Clause in Contracts

Dividend Period. The Dividend Period begins on the first calendar day of the period and ends on the last calendar day of the period. For each account, the dividend period is stated in the “Rate Addendum and Schedule of Fees and Charges.” Accrual of Dividends. For all accounts, dividends will begin to accrue on cash and non-cash deposits (e.g. checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will be paid. Compounding and Crediting. For all dividend-bearing Accounts, dividends will be earned daily for each day on which your balance exceeds the minimum balance requirement for your Account. The dividend period, compounding frequency and the crediting frequency for all accounts are shown in the “Rate Addendum and Schedule of Fees and Charges.” Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.