Certificate of Deposit (CD) Agreement
Terms and Conditions, Interest Rate, and Service Fee Schedule
This Agreement, along with any other documents we provide you pertaining to your Certificate of Deposit (CD), is a contract that establishes rules which control your account with us. Please read this carefully. By agreeing with these terms and conditions and opening the account, you agree to be bound by these rules.
DEFINITIONS – “We,” “our,” and “us” mean the issuer of this account and “you” and “your” mean the depositor(s). “Account” means the original certificate of deposit as well as the deposit it evidences.
TRANSFER – “Transfer” means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You cannot transfer the account without our written consent.
PRIMARY AGREEMENT – You agree to keep your funds with us in the account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without first obtaining our written consent. You must present this certificate when you request a withdrawal or a transfer.
The account is void if the deposit is made by a method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a foreign currency, the amount of the deposit will be adjusted to reflect final exchange into U.S. dollars.
We may change any term of this Agreement. Rules governing changes in interest rates have been provided. For other changes, we will give you reasonable notice of changes in writing or by any other method permitted by law.
If any notice is necessary, you all agree that the notices will be sufficient if we mail it to the address you have provided us. You must notify us of any change.
WITHDRAWALS AND TRANSFERS – Only those of you who sign the permanent signature card may withdraw funds from the account. (In appropriate cases, a court appointed representative, a beneficiary of a trust or pay-on-death account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written is noted in the section bearing the title Number of Endorsements. This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. Unless otherwise specified in writing only one endorsement is required to withdraw funds from this account.
These same rules apply to define the names and the number of you who can request our consent to a transfer.
PLEDGES – Any pledges of this account (to which we have agreed) must first be satisfied before the rights of any joint account survivor, pay-on-death beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant’s rights in the account are subject first to the payment of the debt.
OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION – You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, you specify at the time the account is opened. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds.
Individual Account: Such an account is owned by one person.
Joint Account with Survivorship (And Not As Tenants in Common): Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common.
Joint Account-No Survivorship (As Tenants In Common). Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the “number of endorsements” necessary for withdrawal.
Revocable Trust and pay-on-Death Account (Subject to this Agreement). If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless; (1) all persons creating the account dies, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account tin equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating either of these account types reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time.
Trust Account Subject to Separate Agreement. We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this for will also apply.
SETOFF – You each agree that we may (without prior notice and when permitted by law) set off funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person’s or legal entity’s right to withdraw. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance for which we properly accelerate under the note. This right to set-off does not apply to the account if: (a) it is an Individual Retirement Account or other tax-deffered retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor’s right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off.
BALANCE COMPUTATION METHOD – We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day.
TRANSACTION LIMITATIONS – You cannot make additional deposits to the account during a term (other than credited interest). You cannot withdraw principal from the account without our consent except on or after maturity. (For accounts that automatically renew, there is a grace period after each renewal date during which withdrawals are permitted without penalty.)
In certain circumstances, such as the death or incompetence of an account owner, the law permits, and 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.
FOR ACCOUNTS THAT AUTOMATICALLY RENEW – Each account will automatically renew on the maturity date. You must notify us in writing before, or within the 10-day grace period after, the maturity date, if you do not want the account to automatically renew. If you do not notify us, the renewal term will be the same as the original term, beginning on the maturity date (unless we notify you, in writing, before a maturity date, of a different term for renewal).
Interest earned during one term that is not withdrawn during or immediately after the term is added to principal for the renewal term.
The rate for each renewal term will be determined by us on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month, we will remind you in advance of the renewal and tell you when the rate will be known for the renewal period.
EARLY WITHDRAWAL PENALTY – If we consent to a request for a withdrawal that is otherwise not permitted, you may have to pay a penalty. The penalty amount will be determined as follows:
Term of less than 12 months 90-day interest penalty
Term between 12 and 24 months 180-day interest penalty
Term greater than 24 months 365-day interest penalty
WITHDRAWALS OF INTEREST – Withdrawals of accrued interest during a term are permitted without penalty.
NUMBER OF ENDORSEMENTS – Only one endorsement by any named owner is required to withdraw or renegotiate the terms of the account.
MINIMUM BALANCE REQUIREMENT – You must make a minimum deposit of $1,000 to open the account. You must maintain this minimum balance on a daily basis to earn
the annual percentage yield (APY) disclosed.
PRIMARY CHECKING – A Primary Checking account is a checking account in which the following requirements are met each 60 days.
1) 25 debit transactions. A “debit transaction” for the purpose of this section means a debit to your checking account from an ACH, Bankers Trust bill payment, drafting checks, or use of your debit card as a method of payment or purchase. A “debit transaction” does not include debits to your checking account that originated from ATM withdrawals or other debits to your checking account; and,
2) 2 direct or mobile express deposits of at least $200 each. A “deposit” for the purpose of this section does not include ATM deposits, deposits made in person, account-to-account transfers, or other deposits to your checking account.
RATE INFORMATION – We guarantee the disclosed interest rate and APY for 10 days from the date of the account opening. You must fund the account within this time period. If you do not fund the account within 10 days of account opening, the interest rate and APY will be the prevailing interest rate at the time we receive the deposit. In any case, the account must be funded within 30 days of opening or it will be closed.
Confirmation of your interest rate and APY will be sent to you in a welcome letter at the e-mail address you provided us when you opened the account. The interest rate will be paid until the maturity date of the account. Interest begins to accrue on the business day we receive your deposit of any noncash item (for example, a check) to fund the account.
Interest will be compounded and credited annually, unless you have selected a term shorter than 12 months, in which case interest will be compounded and credited at maturity. If you choose, you may have interest paid to you by check annually or, for a term shorter than 12 months, at maturity.
The APY stated in your welcome letter assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings.
MATURITY DATE – Confirmation of your maturity date, based on the term you selected at account opening and the date we receive the deposit to fund the account, will be sent to you in a welcome letter at the e-mail address you provided us when you opened the account.
Special Rules for Anniversary CDs
ELIGIBLE CERTIFICATES – Only specially noted, 36 month accounts are eligible for “Anniversary CDs.”
INTEREST – The interest rate on your account is a variable rate, which may change annually on each anniversary date of the account opening. The initial interest rate is stated in the welcome letter sent to you at the e-mail address you provided at the account opening. On each anniversary of the account’s opening, we will compare the existing interest rate and APY on your account with the then- prevailing interest rate and APY offered by us on an account with a term comparable to the term remaining on your account and apply it until the next anniversary date of the account opening, or the time remaining on the account, whichever shall first occur. A term comparable to the term remaining on your account shall be any term precisely equal to or within two months of the remaining term on your account. For example, if there are 12 months remaining on the term of your account, we will compare the existing interest rate on your account with the prevailing interest rates on certificates of deposit with 10-14 month terms. Unless notified in writing to the contrary, we will automatically choose the interest rate which is the higher of either the existing interest rate or the then-prevailing standard interest rate or the highest like-term promotional interest rate we offer, and apply it for a term equal to the time remaining on your account. If we change the interest rate on your account, you shall receive prompt notice of the change. At no time will the interest rate and APY fall below that which is disclosed on the account at opening.
RENEWAL POLICY – You understand that the account may automatically renew after the maturity date but the anniversary rate option expires when the account matures. If you choose to let the account automatically renew, the term will be for an additional 36 months. The interest rate will be fixed at the interest rate we have in effect for a 36-month CD at the time the account is renewed and will not change during such term.
Special Rules for Change-a-Rate CDs
ELIGIBLE CERTIFICATES – Only specially noted accounts with an original maturity of 35 months are eligible for Change-A-Rate CDs.
INTEREST – The initial interest rate is stated in the welcome letter sent to you at the
e-mail address you provided at the account opening. The interest rate on your account may be changed once, at any time during the original term of the account. The one- time interest rate change must match the current interest rate offered by us for new CDs at the time of the change.
RENEWAL POLICY – The account will automatically renew at maturity unless you notify us within the 10-day grace period that you do not want the account to automatically renew. If you choose to let the account automatically renew, the term will be for an additional 35 months; however, the change-a-rate option expires with the original maturity. The interest rate will be fixed at the interest rate which we have in effect for 35-month CDs at the time the account is renewed and will not change during such term.
Current Interest Rates and Annual Percentage Yields (APYs), September 30, 2021
|TERM||INTEREST RATE|| APY|
Consumer Certificate of Deposit Fee Schedule
Account Research: $15.00/half hour
Certificate of Deposit Reissue Fee (maximum reissue fee $50.00): $25.00/each
Early Withdrawal Penalty: varies based on term and interest rate—see Terms & Conditions above
Legal Process Fee: $100.00/each
Please contact us at firstname.lastname@example.org or 1-800-362-1688 for a complete list of consumer fees.