Daily Balance Method Clause Samples
The Daily Balance Method is a calculation technique used by financial institutions to determine interest on an account by applying the daily periodic rate to the balance in the account each day. This method involves tracking the account balance at the end of each day and calculating interest based on that specific amount, rather than averaging balances over a period. By using this approach, the clause ensures that interest charges or earnings accurately reflect daily fluctuations in the account, providing a fair and precise way to assess interest for both the institution and the account holder.
Daily Balance Method. For shares (savings) and money market accounts, dividends and minimum balances are calculated by the Daily Balance Method, which is determined by applying a daily periodic rate to the full amount of the balance in the account each day. Rate Information - The Dividend Rate and Annual Percentage Yield on your account are stated in the Credit Union’s Truth-In-Savings Rate Schedule and in your Term Share Certificate. The Annual Percentage Yield reflects the dividends to be paid on your account based on the dividend rate and the frequency of compounding for a fixed period. For Fixed Rate Certificate Accounts the dividend rate and annual percentage yield are fixed and will be in effect for the term of the account. The annual percentage yield assumes that dividends will remain on deposit until maturity. Any withdrawals will reduce your earnings. Balance Computation Information - The minimum balance required to open each account is set forth in the Credit Union’s Truth-In-Savings Rate Schedule. Dividends are calculated by the “Daily Balance Method”, which applies a daily periodic rate to the principle balance in the account each day. (5) years, the forfeiture is an amount equal to six (6) months’ dividends, whether earned or not, calculated on the principal amount; or if the term of the certificate is five (5) years or more, the forfeiture is an amount equal to eighteen (18) months’ dividends, whether earned or not, calculated on the principal amount.
Daily Balance Method. DEFINITIONS (continued)
Daily Balance Method. We may use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the “Collected Balance” in the account each day. Depositor – Any person who signs the Bank’s deposit account signature card. This includes each and every owner of the account and anyone else with authority to exercise control over the funds in the account. Item – Any instrument for the payment, transfer, or withdrawal of funds from an account, even though it may not be negotiable. Examples include checks, electronic transactions such as ACH and ATM withdrawals, drafts, automatic transfers, and online banking transfers. References to an “Item” include, without limitation, situations where a check or electronic transaction is re-presented or re-submitted (as well as situations where a check is converted into an electronic transaction and submitted for payment). This means one authorized check, electronic transaction, or other item could result in multiple fees if such Item is presented or submitted for payment multiple times.
Daily Balance Method. For shares (savings) and money market accounts, dividends and minimum balances are calculated by the Daily Balance Method, which is determined by applying a daily periodic rate to the full amount of the balance in the account each day.
Daily Balance Method. For shares (savings) and money market accounts, dividends and minimum balances are calculated by the Daily Balance Method, which is determined by applying a daily periodic rate to the full amount of the balance in the account each day. Term Share Certificate Accounts (Share Certificate and IRA Certificate Accounts) Rate Information - The Dividend Rate and Annual Percentage Yield on your account are stated in the Credit Union’s Truth-In-Savings Rate Schedule and in your Term Share Certificate. The Annual Percentage Yield reflects the dividends to be paid on your account based on the dividend rate and the frequency of compounding for a fixed period. For Fixed Rate Certificate Accounts the dividend rate and annual percentage yield are fixed and will be in effect for the term of the account. The annual percentage yield assumes that dividends will remain on deposit until maturity. Any withdrawals will reduce your earnings. Balance Computation Information - The minimum balance required to open each account is set forth in the Credit Union’s Truth-In-Savings Rate Schedule. Dividends are calculated by the “Daily Balance Method”, which applies a daily periodic rate to the principle balance in the account each day. (5) years, the forfeiture is an amount equal to six (6) months’ dividends, whether earned or not, calculated on the principal amount; or if the term of the certificate is five (5) years or more, the forfeiture is an amount equal to eighteen (18) months’ dividends, whether earned or not, calculated on the principal amount.