Common use of INDIVIDUAL RETIREMENT ACCOUNT Clause in Contracts

INDIVIDUAL RETIREMENT ACCOUNT. Establishing Account and Rate. An Individual Retirement Account (XXX) may be established by a member completing a separate XXX application form, and making a deposit of $5.00 or more. These accounts are a special type of share accounts, and may provide tax benefits to the account owner. An XXX may be established as a Certificate Account in which event the provisions of this Agreement dealing with Certificate Accounts will apply unless superseded by the provisions of any Agreements specifically applicable to IRAs. Only the individual designated as the Member on the Application and Agreement may be an owner of an XXX. This Account cannot have joint owners. The dividend rate and Annual Percentage Yield for your XXX are variable and are subject to change monthly. Refer to the Rate Schedule for current dividend rates and APY. You may also call visit any office, contact us at 0-000-000-0000, or go to www. xxxxxx.xxx to obtain current rate information. Minimum Balance Requirements; Deposits. An initial deposit of at least $5.00 is required to open an XXX. After you have established your XXX, you may make additional deposits into that account at any time. We may establish minimum amounts for deposits in these Accounts from time to time. Deposits are also subject to federal law limitations. Withdrawing Money from Your XXX. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement, including the Truth in Savings Disclosure, and the Credit Union’s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Currently the only approved methods are an in- office transaction or a written request (such as by mail) meeting the credit union’s requirements. Withdrawals from this account will reduce earnings. If you seek to make a withdrawal that will reduce your account balance below $5.00, we require you to withdraw the full amount in the account and close it. Rate and Annual Percentage Yield (“APY”). Your Account will earn dividends, at rates established by the Credit Union’s Board from time to time. The Credit Union reviews the interest rate and corresponding annual percentage yield (APY) it pays on your XXX each dividend period. Refer to the Rate Schedule for our current rates. The dividend rate and APY may change every calendar month as determined by the Credit Union. This is a variable rate account. The dividend rates will be available each business day at our office. The words “dividend” (or “dividends”) and “interest” may be used interchangeably in this Agreement. Compounding Dividends. We compound your dividends, even though that isn’t required by law. Compounding is more favorable to you, because once dividends have been credited to your account they are added to the balance on which you will earn future dividends. Because we compound dividends, the actual yield on your account will be somewhat higher than the annual dividend rate. The Annual Percentage Yield (APY) will be posted along with the annual dividend rate. For this account type, the dividend period is the calendar month. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. Dividends will be compounded monthly. The prospective dividend rate for each dividend period will be determined in the previous month. Crediting Dividends. Dividends will be credited monthly. Dividends are not available to you until they have been credited to your account. Even though your account earns dividends every day, we don’t actually credit them to your account until the last day of the applicable dividend period. Dividends that are credited to your account will be added directly into your account. If you close your account before dividends are paid, you will not receive any accrued but unpaid dividends. Minimum Balance to Earn Dividends. You earn dividends on your XXX each day that your account balance is $5.00 or more. We reserve the right to adjust minimum balance to earn dividends requirements from time to time. How Withdrawals Affect Dividends. Even though we don’t credit your dividends to your account until the date specified above, we calculate them on a daily basis. Therefore, if you make a withdrawal, you won’t receive any further dividends on the withdrawn amount from the day you make the withdrawal until the day that dividends are credited.