Business Truth in Savings disclosures
The Dividend Rate and Annual Percentage Yield may change monthly as determined by the Board of Directors. 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. Accounts closed prior to crediting dividends will not receive accrued dividends. The Investor’s Money Market and Select Business Checking accounts are tiered rate accounts. The Dividend Rate and Annual Percentage Yield applicable to each account depends on the balance ranges set forth above. Once a balance range is met, the Dividend Rate and Annual Percentage Yield for that range will apply to the entire balance in your account.
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 Annual Percentage Yield set forth above are the prospective rates that the Credit Union anticipates paying for the dividend period. The dividend period begins on the first calendar day of the month and ends on the last calendar day of the month. Dividends begin to accrue on cash and non-cash (e.g., checks) deposits on the business day you make the deposit to your account. Dividends are compounded and credited monthly.
Dividends and minimum balance for all accounts except Smart Business Checking accounts are calculated by the daily balance method, which applies a daily periodic rate to the principal in the account each day. Dividends and minimum balance for Smart Business Checking accounts are calculated by the average daily balance method, which applies a periodic rate to the average daily balance in the account for the period. The average daily balance 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. For Smart Business Checking accounts there is an average daily minimum balance requirement of $3,000 to avoid a service fee. For Business Money Market accounts there is a daily minimum balance requirement of $1,000 to avoid a service fee. For Business Investor’s Money Market accounts there is a daily minimum balance requirement of $10,000 to avoid a service fee.
For savings and money market accounts, up to six (6) pre-authorized, automatic telephone transfers, and online transfers may be made from these accounts to another account of yours or to a third party in any amount during any calendar month. If you exceed these limitations, your account may be subject to a fee or be closed.
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