Truth-In-Savings Account Disclosure
TRUTH-IN-SAVINGS ACCOUNT DISCLOSURE
Except as specifically described, the following disclosures apply to all of the accounts. All accounts described in this Rate and Fee Schedule are share accounts.
1. Rate Information. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For Share/Savings, and IRA Share accounts, the Dividend Rate and Annual Percentage Yield may change quarterly as determined by the Credit Union's Board of Directors. For Money Market Checking accounts, the Dividend Rate and Annual Percentage Yield may change monthly based on the index of the 6-month Treasury Bill on the last day of each calendar month. The Dividend Rate equals the index value of -1.5%. For Share Club, Share Draft/Checking and Money Market Share accounts, the Dividend Rate and Money Market Share accounts, the Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union's Board of Directors. The Dividend Rates and Annual Percentage Yields are the rates and yields as of the last dividend declaration date which is set forth in the Rate Schedule. The Money Market Share account is a Tiered Rate account. If your account balance is $9,999.99 or below, the first Dividend Rate and Annual Percentage Yield listed for this account in the Rate Schedule will apply. If your account balance is from $10,000.00 to $24,999.99, the second Dividend Rate and Annual Percentage Yield listed for this account will apply. If your account balance is $25,000.00 to $99,999.99, the third Dividend Rate and Annual Percentage Yield listed for this account will apply. If your account balance is $100,000.00 or greater, the fourth Dividend Rate and Annual Percentage Yield listed for this account will apply. Once a particular balance range is met, the Dividend Rate and Annual Percentage Yield for that balance range will apply to the full balance of your account.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.
3. Dividend Compounding and Crediting. The compounding and crediting of dividends and dividend period applicable to each account are set forth in the Rate Schedule. The Dividends Period is the period of time at the end of which an account earns dividend credit. The Dividend Period begins on the first calendar day of the period and ends on the last calendar day of the period.
4. Accrual of Dividends. For all accounts, dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to you account. For Share/Savings, Share Club, Share Draft/Checking, Money Market Share and Money Market Checking accounts, if you close your account before accrued dividends are credited, accrued dividends will not be paid.
5. Balance Information. The minimum balance requirements applicable to each account are set forth in the Rate Schedule. For Money Market Checking accounts, there is a minimum average daily balance required to avoid a service fee. If the minimum average daily balance is not met, there will be a service fee as set forth on the reverse side. For Share/Savings and Monet Market Share accounts, there is a minimum average daily balance required to obtain the Annual Percentage Yield for the dividend period. If the minimum average daily balance is not met, you will not earn the stated Annual Percentage Yield. For all accounts using an Average Daily Balance method, dividends are calculated by applying a periodic rate to the average daily balance in the account for the period. The average daily balance is determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in the period.
6. Account Limitations. For Share/Savings accounts, no more than six (6) preauthorized, automatic, or telephone transfers may be made from these accounts to another account of yours or to a third party in any month, and no more than three (3) of these six (6) transfers may be made by check, draft, or debit card to a third party. If you exceed these limitations, your account may be subject to a fee or be closed. For Money Market Share accounts, up to six (6) transactions, such as transfers or withdrawals, may be made monthly. Loan payments at ACU are not included in the six (6) allowable transactions. If the above limitations are exceeded, the account is subject to closure by the credit union. Unlimited additions may be made into the Share accounts.
REGULATION D DISCLOSURE
The credit union tries to always accommodate members’ requests for transfers from one account to another. Our goal is to allow our members as much freedom as possible in accomplishing your personal financial objectives. There are rare occasions when the laws applicable to the operation of this credit union conflict with your expectations. On those occasions, the laws must prevail.
One such law comes from the Federal Reserve and is designated as “Reg D”. Reg D restricts the number of certain types of transfers to six per month on savings accounts. These transfers generally are from savings to checking. Transfers that most frequently come under this regulation are as follows:
• When a member telephones one of our offices to request a transfer of funds from savings
• When overdraft protection automatically transfers funds from savings
• When a member uses the audio response unit (Allegiance Anytime) to transfer funds from savings
• When a member uses Online Access (Fednet) to transfer funds
• When a member authorizes an ACH transaction (automatic withdrawal) from savings Once six of these transfers have been done, Reg D will not allow any additional automatic, telephone or online type transfers for the remainder of the month. Subsequent telephone transfer requests and automatic overdraft protection will not be available.
This best solution is to always keep sufficient funds in the checking account to cover outstanding items. Other solutions include making transfer requests in person or authorizing overdraft protection from your approved line of credit loan. The employees of the credit union want to accommodate your requests whenever possible.
