Share Certificate Account Disclosure
Share Certificate Accounts
Except as specifically described, the following disclosures apply to all Share, Jumbo, and Member's Advantage certificate accounts.
The Annual Percentage Yield (APY) is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend (interest) rate and frequency of compounding for an annual period. The APY is based on an assumption that dividends will be compounded and remain on deposit until maturity. A withdrawal of dividends will reduce earnings.
Variable Rate Accounts
For the IRA Accumulation Variable Rate Certificate accounts, the dividend rate and APY may change monthly as determined by the credit union and will be set at the credit union’s discretion. For savings, IRA Share, and checking accounts, the dividend rate and APY may change monthly as determined by the credit union’s Board of Directors and will be based on the prospective rates and yields that the credit union anticipates paying for the applicable dividend period. For Money Market accounts, the dividend rate and APY may change at any time as determined by the credit union and will be based on the prospective rates and yields that the credit union anticipates paying for the applicable dividend period. For Health Savings Accounts, the dividend rate and APY may change monthly if the savings account rate changes and will be equal to the savings account rate plus or minus a stated percentage, based on the balance in the account. For all variable rate accounts, the initial dividend rate and APY you receive will be set forth on the Rate and Fee Addendum: Deposits in effect at the time you open the account, and then they will vary according to the terms set forth above.
Fixed Rate Accounts
All accounts not listed above have a fixed dividend rate and APY. The specific dividend rate and APY that apply will be set forth on the Certificate Accounts Rate Schedule in effect at the time you open the account and will be in effect for the term of the 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.
Dividends Compounding and Crediting
The compounding and crediting of dividends applicable to each account is set forth in the Rate and Fee Addendum: Deposits. The dividend period begins on the first calendar day of the dividend period and ends on the last calendar day of the dividend period. For the Share, Jumbo, and Member's Advantage certificate accounts, dividends may be transferred monthly to another account. For all IRA Share Certificate accounts, members who are age 59 1/2 or older or are totally disabled have the option to transfer dividends monthly to another account.
The minimum balance requirements applicable to each account are set forth on the Rate and Fee Addendum: Deposits. For all accounts, dividends are calculated by the Daily Balance method which applies a daily periodic rate to the principal in the account each day. For checking accounts, the minimum opening balance must be established at account opening unless established automatic transfers or direct deposits are being made.
Accrual of Dividends
For all accounts, dividends will begin to accrue on deposits on the business day you make the deposit into your account.
After your account is opened, your ability to make additional deposits to your account or withdrawal of dividends and any limitations on such transactions are set forth on the Rate and Fee Addendum: Deposits. For all certificate accounts, withdrawals below the minimum balance will result in closure of the certificate, and a penalty may apply to the entire balance as described in these disclosures. Additional deposits to the IRA Accumulation Variable Rate Certificate account may be made in any increment.
Prior to establishing a Member's Advantage Share Certificate, two qualifying services must be in use by the member. During the term, this certificate allows:
1) one additional deposit of $1,000 minimum; and
2) one rate increase to the current issue rate if greater.
Early Withdrawal Penalty
For all Share Certificate and IRA Share Certificate accounts, we may impose a penalty if you withdraw any of the principal before the maturity date.
Amount of Penalty
For Share Certificate and IRA Share Certificate accounts, the amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows:
Terms of 6 months, 90 days’ dividends
Terms of 12 months, 180 days’ dividends
Regular Share Certificates with terms in excess of 12 months, equal to 50% of dividends to be earned from withdrawal date to the maturity date
IRA Share Certificates with terms in excess of 12 months, 210 days’ dividends
For Share Certificate Accounts established and renewed before Jan. 1, 2016:
Terms in excess of 12 months, 180 days’ dividends
How the Penalty Works
The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. If the account has not yet earned enough dividends to cover the penalty, or if the dividend has already been paid, the penalty will be deducted from the principal.
Exceptions to the Early Withdrawal Penalty
For all accounts, at our option, we may pay the account before the maturity date without imposing an early withdrawal penalty if the member dies. For the IRA Share Certificate accounts, we may pay the account before maturity without imposing the penalty under the following circumstances:
- When member dies; or
- Within seven days after establishment of the account; or
- The owner attains age 59 1/2 or becomes completely disabled; or
- When a qualified distribution is made from a Coverdell Education Savings account.
Exclusive within Ascend Federal Credit Union:
- When the owner moves the IRA Accumulation Variable Certificate account to an IRA Fixed Certificate account; or
- Owners who have attained age 59 ½ or who are completely disabled have the option to move an IRA Fixed Certificate account to another IRA Share Certificate account one time per calendar year.
Maturity (if applicable)
Your account(s) will mature as indicated on your account receipt or maturity notice.
All accounts will automatically renew for another term upon maturity. A grace period of seven calendar days will allow you to withdraw, deposit or change the terms on your Share Certificate account. Once instructions are received and processed on the maturity date or during the grace period, the grace period expires.
For all accounts, you have a grace period allowing seven calendar days from maturity date to change the term, make a deposit, and/or make a partial or complete withdrawal from the Share Certificate account. Once instructions are received and processed on the maturity date or during this grace period, the grace period expires. The certificate will earn the current offering rate for the same term during the grace period until your instructions are provided.
For Share Certificate and IRA Share Certificate accounts, your account is nontransferable and nonnegotiable. The funds in your Share Certificate accounts may not be pledged to secure any obligation of an owner, except obligations with the credit union. The funds in your IRA Share Certificate accounts may not be pledged to secure any obligation.
Checking Account Overdraft Protection
Checking accounts offer overdraft protection (pre-arranged coverage for any overdrafts approved by Ascend that may occur based on your available balance, not your actual balance). When you open your checking account, or anytime after your account is opened, you may sign up for overdraft protection options. One option is for the amount of the overdraft to be transferred from your regular savings account. You may make up to six transfers per month at no charge. (See Rate and Fee Addendum: Deposits for the transfer fee amount.) All this option requires is your agreement to the terms and your signature. If you choose this option, the exact amount of the overdraft will be transferred from your savings account. For this option, joint owners designated on your checking account must also be joint on the savings account.
A second option is overdraft coverage through a signature line of credit loan. With this option, the overdraft amount will be set up on a loan with the current rate of interest. This option requires that you and any joint owner, if applicable, complete a loan application. The amount for which you are eligible is based on your annual income and your credit score.
The third option allows you to combine the first two options by requesting the overdraft amount be transferred from your regular savings account if the money is available. If the money is not available, then the overdraft amount would be set up on a loan. This can also work in reverse. If you overdraft, a loan will be extended to cover it up to your approval limit. If the loan does not completely cover the overdraft, the remainder will be taken from your savings account.
If the funds are not available, or if you do not have overdraft protection, a fee will be charged for each returned check. (See Rate and Fee Addendum: Deposits for the amount of the fee.)
Any loan delinquent by 14 days or more voids loan overdraft protection and will result in a hold for the amount of the delinquency being placed on your savings account. In this case, funds may not be available for transfer from your savings account to clear the check, resulting in a returned check and the corresponding fee. Policies subject to change without notice upon regulation change and/or Board of Directors' approval. Please read all applicable disclosures to each of these options.