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Important Information about Certificates

  1. Rate Information. The Dividend Rate and the Annual Percentage Yield (APY) on your certificate account is set forth in the "Account Information" section. The dividend rate and APY are fixed and will be in effect for the term of the account. The APY is based on an assumption that dividends will remain in the account until maturity. A withdrawal of dividends will reduce earnings.
  2. Dividend Compounding and Crediting. Dividends will be compounded and credited as set forth in the "Account Information" section and are paid directly to the member or are paid to another Credit Union account. The dividend period is the account's term. The dividend period begins on the first day of the term and ends on the maturity date.
  3. Accrual of Dividends on noncash deposits. Dividends will begin to accrue on the business day you make the deposit to your account.
  4. Balance Information. To open any account, you must deposit or already have on deposit the minimum required share(s) in a Primary Savings account. The minimum balance required to open the account and earn the stated APY is set forth in the "Account Information" section. If you do not maintain the minimum balance, you will not earn the stated APY. The dividend calculation method for your certificate is set forth in the "Account Information" section. The daily balance method applies a daily periodic rate to the balance in the account each day.
  5. Effect of closing an account. If you close your account before accrued dividends are credited, accrued dividends may not be paid. A penalty may be imposed for withdrawals before maturity. The penalty we may impose will equal all dividends earned not to exceed the last 60 days for a certificate with a term of less than one year; 120 days earned dividends for a certificate with a term of one year but less than two years; and 180 days earned dividends for a certificate with a term of two or more years. At our option, there may be certain circumstances, such as death or incompetence of an owner, where we may waive or reduce this penalty. The penalty applies whether or not the dividends have been earned. If the account has not yet earned enough dividends, or if the dividends have already been paid, the penalty may be deducted from the principal. See your plan disclosure if this account is part of an IRA or other tax qualified plan.
  6. Account Limitations: After the account is opened, you may not make additions into the account until the maturity date stated above in the "Account Information" section. You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. Your account is nontransferable and nonnegotiable.
  7. Notice: Notice of the options regarding renewal of this Certificate will be sent to the first named Account Owner at least 20 days prior to the maturity date.
  8. Renewal Policy. The Renewal Policy for your account is stated in the "Account Information" section. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below) or we receive notice from you within the grace period mentioned below. Each renewal term will be the same as the original term, beginning on the maturity date. The dividend rate will be the same we offer on new term share accounts on the maturity date that have the same term, minimum balance, and other features as the original term share account. You will have a grace period of ten (10) calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty. For non-renewable certificates, the balance will be transferred to your Share/IRA Share account.
  9. National Credit Union Share Insurance Fund. The National Credit Union Share Insurance Fund federally insures member accounts in this Credit Union.
  10. If "No Penalty SPECIAL" applies, then Early Withdrawal Penalty will be waived; Dividends will be credited on date of early termination or maturity date. This Certificate is subject to the Bylaws, Membership Agreement, and Rules of SFCU which may be amended from time to time.

Please refer to our separate Schedule of Fees and Charges for additional information about charges.

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