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 Effective Date: March 31, 2010 Dividend Rate and APY (Annual Percentage Yield) The dividend rate as of the last dividend declaration date was 0.25% with a corresponding Annual Percentage Yield of 0.25%. Variable Rate Accounts The dividend rate and annual percentage yield may change every quarter as determined by the Credit Union’s Board of Directors. Compounding Dividends will be compounded quarterly and credited quarterly. The dividend period is a quarter. The beginning date of the first dividend period of the calendar year is January 1 and the ending date is March 31. All other dividend periods follow this pattern of dates. The dividend declaration date is the ending date of the dividend period and for the example, is March 31. The dividend declaration date is the date the Credit Union’s Board of Directors declared a dividend for the preceding dividend period. Effect of Closing an Account If you close your account before dividends are paid, you will not be paid the accrued dividends for the period. Minimum Balance Requirements To open this account, you must have a minimum amount of $5.00. To join the Credit Union, you must purchase a $5.00 Share. To earn the annual percentage yield disclosed, you must maintain a minimum daily average daily balance of $100.00 in your account for the dividend period. You will not earn any dividend for the dividend period if your average daily balnce is below $100.00 for the period. The average daily balance is calculated by adding the principal in the account for each day and dividing by the number of days in the period. Transaction Limitations Withdrawals from share accounts shall be limited to 30 per quarter. How Dividends Are Calculated Dividends are calculated using the average daily balance method. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in a period. When Dividends Begin to Accrue Dividends begin to accrue on cash and noncash deposits, such as checks, on the business day you make your deposit. Nature of Dividends Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. |
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