1. RATE INFORMATION. The Annual Percentage Yield (APY) reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For all fixed rate accounts, the dividend rate and Annual Percentage Yield (APY) will be in effect for the initial term of the account. The rates for Renewals shall be those rates in effect at the time of renewal. The APY stated is based on the assumption that dividends will remain on deposit until maturity; a withdrawal of dividends will reduce earnings.
2. COMPOUNDING AND CREDITING. The frequency with which dividends will be compounded and credited is set forth above. The “Month” begins on the first calendar day of the month and ends on the last calendar day of the month. Dividends will be credited and compounded at the end of each month and upon maturity.
3. MINIMUM BALANCE REQUIREMENTS. The minimum balance requirements for each account are set forth above. Minimum balance requirements may include a minimum opening deposit, the minimum balance that you must maintain in the account to avoid service fees, and the minimum balance that you must maintain each day to earn the stated Annual Percentage Yield for that account. The Par value of a share in this credit union is disclosed on the Fee Schedule.
4. BALANCE COMPUTATION METHOD. We use the Daily Balance Method to calculate dividends on your account. The Daily Balance Method applies a daily periodic rate to the balance in the account each day.
5. ACCRUAL OF DIVIDENDS ON NON-CASH ITEMS. Dividends will begin to accrue on the business day that you deposit non-cash items (e.g. checks) to your account.
6. MATURITY. Your account will mature according to the term indicated above, and as indicated on your account summary or statement.
7. TRANSACTION LIMITATIONS. You may not make a partial withdrawal from a certificate before the maturity date.
8. EARLY WITHDRAWAL PENALTIES. The penalty for withdrawal of a certificate prior to maturity will equal 50% of simple dividends projected to be earned over the term of the certificate. The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account. The penalty applies whether or not the dividends have been earned and may result in the loss of principal. Exceptions to Early Withdrawal Penalties: We may, at our discretion, pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: (1) if an account owner dies or is determined to be legally incompetent by a court or other body of competent jurisdiction; (2) if the account is an IRA Account and any portion is paid within seven days after the establishment of the account provided the depositor forfeits an amount at least equal to the simple dividends earned on the amount withdrawn; (3) and if the account is an IRA Account and the owner attains the age of 70 ½.
9. RENEWAL POLICY. Unless you otherwise instruct us, your certificate will automatically renew at maturity. You will have a grace period as indicated above after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty.
10. NONTRANSFERABLE / NONNEGOTIABLE. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.
11. DOUBLE PLAY PROMOTIONAL FEATURE. From time to time the Credit Union may designate certain certificates to have a rate adjustment during the life of the certificate. If this feature is made available, the dividend rate will be considered to be variable. If the member exercises their right to make an adjustment, the rate to which the certificate is adjusted will be the rate offered on the same type of certificate with the same term as originally contracted on the certificate, but it will not change any other feature of the certificate including the maturity date.
12. IRA CERTIFICATES. Any certificate may be opened as an IRA Certificate.
13. PROMOTIONAL CERTIFICATES. Promotional certificates are only offered for a limited time. A promotional certificate will automatically renew as a custom certificate with the same term, but may have different features. The same renewal options apply. See Section 9 for more details. Promotional certificate external funds are funds not currently on deposit with ORNL Federal Credit Union. Promotional certificate internal funds are funds currently on deposit with ORNL Federal Credit Union.
The rates and fees appearing in this Schedule are accurate and effective for accounts as of the Effective Date indicated on page 1 of Rates and Fees Schedule found in the Spending & Savings Disclosures. If you have questions or require current rate information on your accounts, please call 800.676.5328.