Certificates

1. Rate information: The dividend rates and annual percentage yields are based upon the balance ranges as set forth in the certificate account rates chart. 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 are fixed and will be in effect for the term of the account, except for bump certificates, which offer a one-time rate increase during the term to match the current interest rate offered by Oregon State Credit Union on certificates of the same term and required deposit.
2. Compounding and crediting: Dividends will be compounded daily and credited monthly. The dividend period begins on the first calendar day of the month and ends on the last calendar day of the month.
3. Balance information: The minimum balance required to open and maintain each account is $500. For Scottie and TLT certificates, the minimum opening balance is $250. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the principal in the account each day.
4. Accrual of dividends: Dividends begin to accrue on cash and non-cash (e.g., check) deposits on the business day you make the deposit into your account.
5. Transaction limitations: After your account is opened, you may not make additional deposits to your certificate account, unless the account is an add-on certificate. You may make additional deposits to your add-on certificate’s principal balance after the account is open, until maturity. If your add-on certificate rate is for new money only, any additional deposits must also be new money. You may make dividend withdrawals from all certificate accounts. A withdrawal of dividends will reduce earnings.
6. Maturity: Your account will mature within the term set forth at the time of opening your certificate. IRA certificates must have terms of 12 months or longer, except for the 8-month add-on promotional certificate.
7. Early withdrawal penalty: We may impose a penalty if you withdraw any of the principal before the maturity date.
   • How the penalty works: If certificate funds other than dividends are withdrawn prior to maturity, a penalty is imposed. The penalty assessed may reduce the remaining balance after the withdrawal. If the amount withdrawn reduces the balance below the minimum balance required, the certificate will be canceled, and the penalty will be taken from the entire principal balance.
   • Amount of penalty: The amount of the early withdrawal penalty is based on the term of your account. Term of 365 days or more = $25, plus 3 percent of the amount withdrawn. Term of 364 days or fewer = $25, plus 1 percent of the amount withdrawn. Earned dividends will not be subject to a penalty.
   • Exceptions to early withdrawal penalty: We may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:
     • When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
     • Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven days after establishment, or where the account is an IRA and the owner attains age 59 1/2 or becomes disabled.
8. Renewal policy: Your certificate account will automatically renew for another term upon maturity, at an interest rate offered for that certificate at the time of renewal. There is no grace period. Any changes to the certificate account after the maturity date will result in withdrawal penalties. You may not make additional deposits to a certificate account after it automatically renews to a non-promotional rate and term at maturity.
   • The 8-month add-on promotional certificate will automatically renew at maturity to a non-promotional 6-month certificate at an interest rate offered for that non-promotional certificate at the time of renewal.
   • The 13-month and 15-month promotional certificates, including the 15-month promotional add-on certificate, will automatically renew to a non-promotional 12-month certificate at an interest rate offered for that non-promotional certificate at the time of renewal.
9. Nontransferable/nonnegotiable: Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the credit union. The par value of a regular share in the credit union is $5.
10. Automatic renewal: Members will receive a maturity notice shortly before the certificate matures. The certificate can automatically be renewed at the dividend rate in effect on the renewal date. Members will receive notices electronically when you register for estatements.

Rate information

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. For members in the Essential category, no dividends will be paid; for members in the Enhanced and Premier categories, the dividend rate and annual percentage yield are set forth on the preceding page. The dividend rate and annual percentage yield for the next month is based upon your Member Merit status on the last day of the previous month. The Investor’s Money Market account is a tiered rate account. The dividend rate and annual percentage yield applicable to each account depends on the balance ranges set forth on the preceding page. 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 on the preceding page 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., check) deposits on the business day you make the deposit into your account. Dividends are compounded and credited monthly.

Balance information

Dividends and minimum balance for all accounts except Value Checking and TLT Checking accounts, which do not earn dividends, are calculated by the daily balance method, which applies a daily periodic rate to the principal balance in the account each day. For Money Market accounts, there is a minimum daily balance requirement of $1,000 to earn dividends. For Investor’s Money Market accounts, there is a minimum daily balance requirement of $10,000 to earn dividends.