Common use of Account and Rate Clause in Contracts

Account and Rate. A member may establish a Certificate Account and/or a Long Term Certificate Account (we will refer to these as “Certificates”) by signing appropriate documentation and making the required minimum deposit. Certificates are savings accounts (also known as “Term Accounts”) that generally earn a higher rate of interest than other savings accounts. The interest rate and APY for Certificates are fixed. Once you purchase a Certificate, your interest rate will not be changed or recalculated during the term of that Certificate. The APY assumes that interest earned will remain on deposit until maturity. A premature withdrawal from this account will reduce earning and may incur penalties (see the Rate Schedule for information concerning such penalties). The Credit Union may establish various categories of Certificate Accounts; details of each type are shown in the Credit Union’s Truth-in-Savings Disclosure.