Account Disclosure for Share & Share Draft Accounts, Share & Share Certificates
Except as specifically described, the following disclosure applies to all accounts. Additional information regarding accounts will be found in the Membership Account Agreement.
- Rate Information – the Annual Percentage Yield (APY) 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 a 365 day year. For Share Accounts: The APY and the Dividend Rate are projected as of the last dividend declaration date stated on the rate chart. Dividends are declared monthly by the Board of Directors for the prior month. Federal regulation prohibits the payment of dividends in excess of earnings. For Share Certificates: The APY and Dividend Rate are reviewed and may be adjusted on a weekly basis. During the term of the certificate the APY is fixed. To earn the APY all dividends must remain on deposit until maturity. Any withdrawal of dividends prior to maturity will reduce earnings.
- Dividend Declaration Date – The date that the Board of Directors of a credit union declares a dividend for the preceding dividend period.
- Balance Computation Method – The Average Daily Balance is determined by adding the daily balance in the account for each day of the month and dividing that figure by the number of days in the month.
- Nature of Dividends – Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.
- Accrual of Dividends – Dividends will begin to accrue on cash deposits and non-cash deposits (e.g. checks) on the business day you make the deposit to your account. Dividends accrue on a daily basis. If you close a Share/Savings Account, all accrued dividends will be paid. For Certificates, accrued dividends may be forfeited as part of the penalty for early withdrawal.
- Compounding and Crediting – Dividends will be compounded and credited monthly for each account. The Dividend Period for each account is monthly beginning on the first calendar day of the month and ending on the last calendar day of the month.
- Account Transfer Limitations – During any statement period, you may not make more than six withdrawals or transfers to another credit union account owned by you or a third party by means of a preauthorized or automatic transfer, or telephonic order of instruction. No more than three of the six transfers may be initiated by check, draft, debit card, if applicable, or similar order to a third party. If you exceed the transfer limitation in any statement period, your check or ACH debit will be returned unpaid and a non-sufficient funds fee will be charged to your account.
- Maturity – Your Certificate will mature on the maturity date set forth on your Account Receipt.
- Early Withdrawal Penalties – We will impose a penalty if you withdraw any of the principal before the maturity date. There are certain circumstances, such as death, incompetence, or permanent disability of an account owner where we may waive this penalty. For a Certificate with a maturity date of one year or less, the penalty we may impose will equal 90 days dividends on the amount withdrawn whether earned or not.
- Renewal Policy – The Certificates will not automatically renew.
- Accounts will be charged the standard Overdraft fee of $30 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal, or other electronic item that is paid and $30 for items returned. An overdrawn balance must be repaid within 30 days. We may not pay items under your overdraft privilege if you do not maintain your account in good standing by bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours, if you default on any loan or other obligation to Allentown Federal Credit Union or if your account is subject to any legal or administrative order or levy.