Share Certificate Disclosure
LBS Financial Credit Union issues Share Certificates on the terms and conditions described in this disclosure and in the Truth-In-Savings Disclosure of Membership Agreement & Account Terms.
OWNERSHIP: The Share Certificate is owned according to the Membership and Account Application signature card and the member/account number.
PAYMENT OF DIVIDENDS: Dividends begin accruing on the date of deposit. Dividends are calculated using the Average Daily Balance method and are paid at the dividend rate, compounded and are credited on the last day of each month and at maturity. The annual percentage yield (APY) assumes dividends remain in the Share Certificate account until maturity. A withdrawal will reduce earnings.
MINIMUM DEPOSIT/MINIMUM BALANCE REQUIREMENTS: A minimum deposit of $1,000 must be made and a minimum balance of $1,000 must be maintained in the 3-month Share Certificate to earn the disclosed APY and to avoid cancellation of the Share Certificate account. Share Certificate terms greater than 3 months require a minimum deposit and a minimum balance of $2,500 to earn the disclosed APY and to avoid cancellation of the Share Certificate account. From time to time the Credit Union may have “Special” Share Certificate promotions, which may require different minimum deposits than stated above. We will inform you of such at the time of your initial opening deposit and on our Share Certificate Rate Chart.
ADDITIONAL DEPOSITS: Additional Deposits are allowed to be made into the 3-month Share Certificate only and at any time during its term. If the term of the Share Certificate is greater than 3 months, no additional deposits are permitted during the term of the Share Certificate. From time to time the Credit Union may have “Special” Share Certificate promotions that allow for additional deposits during the term of the Share Certificate. We will inform you of such at the time of your initial opening deposit and on our Share Certificate Rate Chart.
WITHDRAWAL LIMITATIONS: No withdrawals of principal are permitted before maturity. Dividends may be withdrawn in accordance with the terms of according to a particular Share Certificate.
MATURITY AND RENEWAL: This Share Certificate will automatically renew on the maturity date (above) unless the Credit Union gives the account holder notice otherwise. The Credit Union will give the account holder notice of maturity of the Share Certificate and renewal options, if any, at least seven (7) days prior to maturity. If the Share Certificate will automatically renew, the notice will inform the owner of the terms under which the Credit Union proposes to renew the Share Certificate or otherwise make the funds available to the account owner. Unless the account owner withdraws all funds from the Share Certificate at maturity or within a grace period of seven (7) days following maturity, or otherwise directs the Credit Union as to disposition of the funds, the Share Certificate will be renewed at the dividend rate in effect at the time of maturity or the funds will be paid as proposed by the Credit Union. Dividends will continue to accrue during the seven (7) day grace period at the new rate. Rates are subject to change at the time of the Share Certificate renewal. Refer to the LBS Financial Credit Union’s Share Certificate Rate Chart for current dividend rate and annual percentage yield.
PENALTIES FOR EARLY WITHDRAWAL: Early withdrawal of any principal amount during the Share Certificate term will result in a SUBSTANTIAL forfeiture of dividends as follows: If the term of the Share Certificate is three (3) months or less, you will lose an amount equal to 30 days of dividends on the principal amount withdrawn. If the term is less than one (1) year but longer than three (3) months, you will lose an amount equal to 90 days of dividends on the principal amount withdrawn. If the term is one (1) year or longer, you will lose an amount equal to 180 days of dividends on the principal amount withdrawn. If the amount withdrawn reduces the principal amount below the stated minimum, we will cancel your Share Certificate and the penalty will apply to the entire balance in the Certificate account. The remaining funds will be transferred to your Share Savings.
SHARE CERTIFICATES ARE NOT NEGOTIABLE