Online Certificates of Deposit Account Disclosure

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Important Account Information for Our Members

The Online Certificate of Deposit Account (CD) can only be opened through Workers Online at www.workerscu.com. This account will have a minimum deposit of $500 with a maximum of $250,000 and the initial deposit must be completed online as well. Subsequent deposits and withdrawals can be made either through Workers Online or in one of our branches.

Rate Information – The Dividend Rate and APY may change at our discretion, at any time, as determined by the credit union board of directors. All rate information will be posted online at www.workerscu.com.

Compounding and Crediting – Dividends are compounded daily for certificate of deposit terms greater than or equal to 12 months.

Dividends will be credited to your account every month unless the certificate of deposit is less than a 12-month term. If the certificate of deposit is less than a 12-month term, the interest will be calculated as simple interest and paid at the end of the certificate of deposit term.

Dividend Period – The dividend period is monthly. As an example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the last day of the dividend period and for the example above is January 31.

Balance Computation Method - The balance computation method used to calculate the interest on certificate of deposit accounts is as follows: Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.

Accrual of Dividends on Noncash Deposits - Interest will begin to accrue on the business day you place the noncash items (e.g., checks) in your account.

Fees - There are no fees assessed to your certificate of deposit account.

Other Account Features:

  • Only three terms will be offered: 6, 12 and 24 months
  • No Dividend Rate or APY Tiers
  • A maximum deposit of $250,000 per member
  • Deposits will be made by individuals only, no businesses or brokers
  • These accounts cannot be opened in a branch location

Transaction Limitations -After your account is opened, you may not make additions to the account until the maturity date of the account. You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal.

Principal withdrawn before maturity is included in the amount subject to an early withdrawal penalty. You can withdraw credited interest any time before maturity without penalty.

Early Withdrawal Penalties - A penalty may be imposed for withdrawals of principal before maturity as follows: The penalty we may impose will be equal to fifty percent (50%) of the interest that the withdrawn amount (that is subject to penalty) would have earned for the remaining term of the certificate of deposit.

In certain circumstances, such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan.

Withdrawal of Interest Prior to Maturity - The APY is based on an assumption that the interest earned will remain in the account until maturity. A withdrawal of that interest will reduce earnings.

Automatically Renewable Account - This account will automatically renew at maturity. If the present term of your account is no longer offered, your account will renew at the next longest term offered. You may prevent renewal if you withdraw the funds in the account at maturity or within the grace period as shown on the maturity notice that will be mailed to you prior to the maturity date. If the funds remain in this account during the grace period, the interest rate will be the same interest rate that would have been paid on this account if renewed. Each renewal term, if applicable, will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new certificate of deposit accounts on the maturity date that have the same term, minimum balance and other features as the original certificate of deposit account.

Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity) –

For Certificates of Deposit greater than 18 months - The penalty we may impose will be equal to fifty percent (50%) of the dividends that the withdrawn amount (that is subject to penalty) would have earned for the remaining term of the certificate.

For Certificates of Deposit 18 months or less - The penalty we may impose will be equal to twenty-five percent (25%) of the dividends that the withdrawn amount (that is subject to penalty) would have earned for the remaining term of the certificate. In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan.

Automatically renewable account – This account will automatically renew at maturity. (Note: If the present term of your account is no longer offered, your account will renew at the next longest term offered. If the present term of your Workers Flex Rate account is no longer offered or the Workers Flex Rate term account is discontinued, your account will renew into a regular term account at the next longest term offered. If your account is a Special term certificate account, your account will renew at the next regular term account and term offered.) or we receive written notice from you within the grace period mentioned below, if any. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, dividends will accrue after final maturity. If this certificate is withdrawn during the grace period, the dividend rate will be the same dividend rate that would have been paid on this certificate if renewed. Each renewal term, if applicable, 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 which have the same term, minimum balance (if any) and other features as the original term share account. You will have a grace period of ten calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty.