SHARE CERTIFICATES

Perry Point Federal Credit Union offers a variety of Share Certificate terms to meet your needs. You’ll notice that we use the term “share” on our certificates. We use the term “share” because your deposits in these accounts represent your share of ownership in the credit union. Share certificates are a good place to keep your money if you won’t need access to it for a while, such as when you’re saving for a car, college tuition, a wedding or retirement.

Our certificates pay a higher dividend rate than our Share Savings Accounts and our rates are very competitive with other financial institutions. When shopping for share certificates or certificates of deposit (CD’s), compare the annual percentage yield (APY) for the different term lengths. The APY represents what you’ll actually earn on your money in dollars and cents, expressed as a percentage. It factors in the dividend (or interest) rate and the compounding method used by the financial institution. Generally, the longer the term you select, the higher the rate you’ll receive.

Share Certificate Accounts are a safe place to keep your money because, unlike stocks and mutual funds, you're guaranteed to receive your initial investment (referred to as the principal) when the certificate matures, plus you earn a set dividend rate. The National Credit Union Administration, a U.S. Government agency, insures all of your deposits in our credit union up to $100,000. Your I.R.A. deposits are insured up to $250,000.

Regular Share Certificates
Regular Share Certificate Accounts are available to any member who can deposit the minimum balance. The minimum balance required to open and maintain a Share Certificate is $500.00. For members under age 18, the minimum balance required to open and maintain a Minor Share Certificate is $250.00. You must maintain a minimum average daily balance of $500.00 (or $250.00 for a Minor Share Certificate) during the calculation period to obtain the disclosed annual percentage yield. At your option, dividends may be added to your Share Certificate Account, paid to your Regular Share Savings Account, or mailed to you by check. Click here for information on calculation of dividends, early withdrawal penalty, and transaction limitations.

I.R.A. Share Certificates
Individual Retirement Account (I.R.A.) Share Certificate Accounts are available to any member who has established an I. R. A. with us and who can deposit the minimum balance. For more information on our I.R.A., click here. The minimum balance required to open and maintain an I.R.A. Share Certificate is $500.00. You must maintain a minimum average daily balance of $500.00 during the calculation period to obtain the disclosed annual percentage yield. At your option, dividends may be added to your I.R.A. Share Certificate Account or paid to your I.R.A. Share Savings Account. Click here for information on calculation of dividends, early withdrawal penalty, and transaction limitations. NOTE: Because of the income tax advantages of an I.R.A., the Internal Revenue Service has a number of conditions on making deposits to and making withdrawals from this account. For more details, consult your tax advisor or ask us for a free brochure.

The following terms apply to our Regular and I.R.A. Share Certificate Accounts

Calculation of Dividends
Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield may change at any time as determined by the Board of Directors. Dividends are compounded daily and credited to these accounts quarterly. The dividend period is the period of time at the end of which an account earns dividend credit. For these accounts, dividends will be credited at the end of each calendar quarter.

We use the average daily balance method to calculate the dividends on your account. This method applies a daily periodic rate to the average daily balance in the account. 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.

Dividends will begin to accrue on non-cash deposits (for example, checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will be paid, however, an early withdrawal penalty may apply.

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Early Withdrawal Penalty
If the term of the certificate is six (6) months, the forfeiture is an amount equal to one (1) month’s dividends, whether earned or not. If the term of the certificate is twelve (12) months through thirty-six (36) months, the forfeiture is an amount equal to three (3) months’ dividends, whether earned or not. The penalty doesn't apply to withdrawals subsequent to the death or disability of any owner.

The annual percentage yield is based on an assumption that dividends will remain in the certificate account until maturity. A withdrawal will reduce earnings.

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Transaction Limitations
After the account is opened, you may not make additions into the account until the maturity date stated on the account. If you withdraw principal from your account below $500.00 before maturity, we'll close your account.

We reserve the right at any time to require sixty (60) days notice in writing before each withdrawal from a dividend bearing account.

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Renewal Policy
These accounts will not automatically renew at maturity. You may renew the account at your option at the then existing terms. Dividends will not be paid after maturity. The balance will be transferred to your Regular Share Savings Account in the case of a Regular Share Certificate or to your I.R.A. Share Savings Account in the case of an I.R.A. Share Certificate.

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