Common use of Early Withdrawal Penalties Clause in Contracts

Early Withdrawal Penalties. We will impose a penalty if you withdraw any of the principal in your account before the maturity date. Certificates 90 days-12 months are subject to a penalty of 90 days or all accrued divideds and certificates longer than 12 months are subject to a penalty of 180 days of dividends. The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account, and applies whether or not the dividends have been earned. The penalty may be deducted from the principal amount of the deposit. The Annual Percentage Yield disclosed for your account is based on an assumption that dividends will remain in the account until maturity; a withdrawal will reduce earnings. Exceptions to Early Withdrawal Penalties: We may, at our option, pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: (1) If an account owner dies or is determined to be legally incompetent by a court or other body of competent jurisdiction; (2) If the account is an IRA Account and any portion is paid within seven days after the establishment of the account; (3) If the account is a Xxxxx Plan, provided that the depositor forfeits an amount at least equal to the simple interest earned on the amount withdrawn; or (4) if the account is an IRA or Xxxxx Account and the owner attains the age of 59 1/2 or becomes disabled.