Share Draft Accounts
Share Draft Account Disclosure
The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. The dividend rates and annual yields for all Share Draft Accounts are approved by the board on a quarterly basis and may change as determined by the Board of Directors.
Nature of Dividends.
Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.
Dividend Compounding and Crediting.
The dividend period is the period of time at the end of which an account earns dividend credit. The compounding for the Interest Bearing Share Draft Account and Money Market Share Draft Account is on a monthly basis running from the beginning of the calendar year to the end.
Accrual of Dividends.
Dividends will begin accruing on the first business day a deposit is made into the member’s account that meets the minimum balance requirements. If the account is closed before accrued dividends are credited, dividends will not be received.
To open any account, you must deposit or already have on deposit the minimum required shares in a Share Account. The Interest Bearing Share Draft Account and Money market accounts use the average daily balance for each month in the dividend period. To figure the dividend yield use the following formula, the average balance x APR rate/ Number of Months.
Courtesy Pay Protection has a 90 day period before it is activated on an account and the account must be in good standing. Courtesy Pay Protection will only stay active on an account if every 30 days the account has a positive balance and the member stays in good standing at the credit union. The Courtesy Pay Protection will only pay for items including the Courtesy Pay fee up to $200.00. Any additional items coming through the account will be charged NSF Fees.
Regular Share Draft Accounts
The member does not have to keep a minimum balance with this account and the account does not earn interest on the balance held.
Interest Bearing Share Draft Accounts
Minimum balance of $200.00 is required to start account and must be kept in the account to avoid a $3.00 fee. Dividends will be paid out on any average daily balance for the month over $200.00 at a the same board approved interest rate as the regular shares. Dividends are based on the average balance for the month and will be paid out at the end of every month.
Money Market Share Draft Accounts
Minimum balance of $200.00 is required to start the account and must be kept in the account to avoid a $5.00 fee.
Accrual of Dividends.
Dividends will begin accruing on the first business day a deposit is made into the member’s account that meets the minimum balance requirements. If the account is closed before accrued dividends are credited, dividends will not be received. Dividends will be paid on any average daily balance for the month over $200.00 and the interest will increase based on a tiered rate schedule where the more you save the higher the dividend rate. Dividends will be paid out at the end of every quarter. These tiered rates are to be determined.