Important Account Information
- Rate Information: The Dividend Rates and Annual Percentage Yields on your accounts are provided 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. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce the stated APY. Regular and IRA Certificates: 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.
- 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.
- Compounding and Crediting: Dividends will be compounded and credited as set forth on the Rate Schedule. For regular Certificates, 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.
- Balance Information: The minimum balances required to open and earn dividends on accounts are on the Rate Schedule. Dividends are calculated by the daily balance method. Dividends are calculated daily based on the ending balance. On the last calendar day of the month, accrued dividends are totaled and then credited to the account.
- Accrual of Dividends: Dividends begin to accrue on cash and non-cash (checks and electronic) 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 other than accrued, uncredited dividends under the Bonus Dividend Plan.
- Account Limitations: The account limitations for each account are listed on the Rate Schedule provided at account opening and detailed in the Membership & Account Agreement.
- Transaction Limitations: You may withdraw accrued, uncredited dividends at any time other than as specified above in Accrual of Dividends. Achiever’s Club: Permits additional deposits of $50 or more at any time. Savings & MMA: 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.
- Maturity: Your account will mature within the term set on the Rate Schedule provided at account opening or maturity date on your Certificate Receipt or Maturity Notice.
- 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 principal.
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 situations:
i. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
ii. When the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is an IRA and the owner attains age 59 1/2 or becomes disabled.
- Renewal Policy: Regular and IRA Certificates are automatically renewable accounts. Upon maturity, accounts automatically renew for the same term unless otherwise noted. There is a grace period of ten (10) days after maturity in which to withdraw funds without incurring an early withdrawal penalty.
- Nontransferable/Nonnegotiable: Your account is nontransferable and nonnegotiable. The funds in your accounts (except IRA Certificates) may not be pledged to secure any obligation of an account owner, except obligations with Columbia Credit Union.
- Fees for Overdrawing Accounts Fees may be imposed on each check, draft, item, ATM withdrawal, debit card point of sale purchase, preauthorized automatic debit, telephone initiated withdrawal or any other electronic withdrawal or transfer transaction that is drawn on an insufficient available account balance. The entire balance in your account may not be available for withdrawal, transfer or paying a check, draft or item. You may consult the Funds Availability Policy for information regarding the availability of funds in your account. Fees for overdrawing your account may be imposed for each overdraft, regardless of whether we pay or return the draft, item or transaction. If we have approved an overdraft protection limit for your account, such fees may reduce your approved limit. Please refer to the Fee Schedule for current fee information.
Except as specifically described, the Important Account Information apply to all accounts. If you have questions or require current rate information on your accounts, please contact the Credit Union.