Certificate Share Accounts
Share certificates are the safest and highest paying investments the Credit Union offers. Safest - because your total investments are insured by the National Credit Union Administration to at least $250,000; and, highest paying - because we contract with you at a fixed percentage rate over the full term of the certificate. Therefore, your investment is not subject to market fluctuations and uncertainty.
Also, we pay dividends as often as each month. Most commonly, dividends are paid quarterly on the anniversary date of the opening of the certificate. Dividends can be paid by check, transferred to a share or draft account, or credited to the certificate account.
Common features to all certificates:
- You must maintain a Primary Share account in addition to the certificate.
- A minimum balance of $1,500 must be on deposit at all times in the certificate. Higher balances may be required on "Special CDs."
- The certificate will automatically renew for a like term at maturity. "Special CDs" may not have renewal features.
- There is a "grace period" of ten days after maturity to withdraw funds without being charged an early withdrawal penalty.
- You may not make deposits into this account until the maturity date. Any withdrawals prior to maturity are subject to a 90-day dividend penalty (if a 3-Month to 2-Year Share Certificate), or a 120-day dividend penalty (if a 2 1/2-Year or 3-Year Share Certificate).
- The penalty calculation:
- The penalty is assessed only on the amount that is withdrawn before maturity.
- Dividends are paid on the certificate to the day of withdrawal.
- The amount withdrawn is multiplied by the certificate's rate, multiplied by 90 days (or 120 days) then divided by 365 days.
(Amount X rate X 90 or 120) divided by 365
This is the amount of the penalty. It is then subtracted from the certificate balance. If dividends have already been withdrawn, or dividends paid to the account are less than the penalty amount, then a reduction to the original principal is possible.