Columbia Credit Union - Business Account Rate Schedule

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This Rate and Fee Schedule sets forth current conditions, rates, fees and charges applicable to your Certificate accounts at Columbia Credit Union at this time. The Credit Union may offer other rates and fees or amend the rates and fees contained in this schedule from time to time. Each account holder agrees to the terms set forth on the Membership Account Fee Schedule and acknowledges that it is a part of the Membership and Account Agreement.

1. Rate Information. The Dividend Rates and Annual Percentage Yields on your accounts are set forth on the Rate Schedule. The Annual Percentage Yield is a percentage rate that 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 Certificate Accounts the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the Account, unless, as available, the Bump Rate feature is used. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings. Bump Rate feature: on 14-month business certificates opened between 10/1/09 - offer expiration, you can request once during the certificate's original term to increase the yield to the then-current, non-promotional, 18-month certificate yield for the remainder of the 14-month certificate term. Checking Loyalty Program: Requires Columbia checking account and any two of the following: 1) Columbia money market, 2) Columbia loan of $10,000 or more in good standing or 3) Columbia membership of 10 years or more.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. The Dividend Rate and Annual Percentage Yield are accurate as of the Effective Date which the Credit Union anticipates paying for the applicable dividend period.
3. Compounding and Crediting. Dividends will be compounded and credited as set forth on the Rate Schedule. For Regular Certificate Accounts, the Dividend Period begins on the first calendar day of the month and ends on the last calendar day of each month. For savings, checking and MMA, dividends are compounded and credited at the end of each month.
4. Balance Information. The minimum balances required to open and maintain each account are set forth on the Rate Schedule. Dividends are calculated by the average daily balance method which is determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in the period.
5. Accrual of Dividends. Dividends begin to accrue on cash and noncash (checks) deposits on the business day you make the deposit to your account. If you close your account prior to the dividend period, accrued dividends will be paid upon request.
6. Account Limitations. The account limitations for each account are set forth on the Rate Schedule and detailed in the Membership & Account Agreement.
7. Transaction Limitations. Savings & MMA: Transaction limitations will apply. No more than six (6) pre-authorized, automatic, phone or computer transfers, may be made from this account to another account of yours or to a third party in any month. If you exceed these limitations, the transaction may be returned, unpaid, and your accounts may be subject to a fee or closure.
8. Maturity. Your account will mature within the term set on the Rate Schedule or maturity date set forth on your Certificate Receipt or Maturity Notice.
9. Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal before the maturity date. a. Amount of Penalty. The amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows: 365 days or less - 90 days dividends; more than 365 days - 180 days dividends. b. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if dividends have already been paid, the penalty will be deducted from the principle. c. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: i. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. ii. Where the accunt is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment.
10. Renewal Policy. Accounts are automatically renewable accounts. Upon maturity, accounts automatically renew for the same term unless otherwise noted. 14-month certificates (10/1/2009 - 10/16/09) renew to 18-mo terms. 9-mo certificates (available 1/15/09-2/18/09) renew to 6-mo terms. There is a grace period of ten (10) days after maturity in which to withdraw funds without incurring an early withdrawal penalty.
11. Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your business accounts may not be pledged to secure any obligation of an owner, except obligations with Columbia Credit Union.