Except as specifically described, the following disclosures apply to all of the accounts.
1. Rate Information
The Dividend Rate and Annual Percentage Yield (APY) on your accounts are set forth in the Share Draft Rates and Terms. 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 Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union’s Board of Directors.
2. Nature of Dividends
Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The Dividend Rate and APY are the prospective rates and yields that the Credit Union anticipates paying for the applicable dividend period.
3. Compounding and Crediting
Dividends will be compounded and credited as set forth in the Share Draft Rates and Terms. The Dividend Period for each account is set forth above. The Dividend Period begins on the first calendar day of the period and ends on the last calendar day of the period.
4. Accrual of Dividends
Dividends will begin to accrue on cash share deposits on the business day you make the share deposit to your account. Dividends will begin to accrue on noncash share deposits (e.g. checks) on the business day you make the share deposit to your account. For all accounts, if you close your account before accrued dividends are credited, accrued dividends will not be paid.
5. Balance Information
The minimum balance required to open each account is set forth in the Share Draft Rates and Terms. For accounts using an Average Daily Balance method dividends are calculated by applying a periodic rate to the average of the daily balances over the dividend period. The dividend is determined by the Average Daily Balance for the quarter.