High Yield Checking Truth-In-Savings Disclosure

Account Overview

• High Yield Checking – A variable rate, share draft account with no minimum balance that provides accountholders with dividends when they meet the minimum qualifications associated with their High Yield Checking account during each monthly qualification period. Accountholders must be at least 18 years of age to open a High Yield Checking account with a limit of one account per member.
  
  

Purpose and Expected Use of Account

This account is intended to be the accountholder’s primary checking account in which payroll transactions and day-to-day spending activities are posted and settled.
Based on the spending activities mentioned above, we expect the account to be used frequently throughout each month, with transactions reflecting a wide range of amounts. Small transactions made on the same day at a single merchant, or multiple transactions conducted within a short period, especially near the end of a monthly qualification cycle, are not considered normal day-to-day spending behavior. Transactions that appear to be made solely to qualify for account rewards may be deemed inappropriate and may not count towards earning the account’s rewards.
The Credit Union reserves the right to determine if the account is being maintained for purposes other than the expected day-to-day primary use. Accountholders who persist in conducting transactions in a calculated and limited fashion in order to meet the monthly qualifications may have their accounts converted to a different checking account or closed altogether. We also reserve the right to convert the account to a different checking account if the account does not have consistent active use over six consecutive statement cycles. We have the right to close this account at any time, with proper notice. Our decision to close the account will not impact your existing obligations with us including any obligation to pay fees or charges incurred prior to termination. No deposits will be accepted, and no checks will be paid after the account is closed. If the account is closed, you will forfeit any rewards that have not yet been credited to your account and a check for the remaining balance, if applicable, will be mailed to the accountholder at the address indicated in our current records. Upon termination of your HYC Account, any optional add-on products/services associated with this account will also be terminated at the same time. If, for whatever reason the Credit Union closes the HYC Account portion of your account, your account will automatically be converted to a standalone checking or savings account and only those terms and conditions noted within the Credit Union’s Truth in Savings and Membership and Account Agreement and Disclosure will apply. This account is not to be used for commercial purposes.

Truth-In-Savings High Yield Checking Account Disclosures

Except as specifically described, the following disclosures apply.

• Account Overview. The HYC Account is a dividend-earning account designed to offer rewards to members who meet specific monthly qualification requirements.

• Balance Requirements. There is no minimum balance required to open a HYC account and there is no minimum average daily balance you must maintain.

• Dividend Rate and Annual Percentage Yield. This is a variable rate account. The Dividend Rate and Annual Percentage Yield on your accounts, as of the last Dividend Declaration Date, are set forth above. 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 a 365-day period. The Dividend Rate and Annual Percentage Yield is determined at our discretion, and we may change the Dividend Rate on your account at any time, without any limitations, and without notice to you.

• Nature of Dividends. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of the dividend period. Dividends are not guaranteed.

• Compounding and Crediting. Dividends will be compounded and credited as set forth above. The Dividend Period begins on the first calendar day of each month and ends on the last calendar day of each month. Dividends will be credited to your HYC account on the last business day of the month. If your account is closed before accrued dividends are credited, dividends will not be paid.

• Accrual of Dividends. Dividends will begin to accrue on both cash deposits and noncash deposits (e.g., checks) on the business day that they are posted and settled to your account.

• Dividend Calculation. Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in your account for the period. The average daily balance is calculated by adding the principal balance in your account for each day of the period and dividing that figure by the number of days in the period. The period we use is the monthly Statement Cycle.
  • “Statement Cycle” means the period of time for which the Credit Union provides a summary of the financial activities and transactions that post and settle to the accountholder’s account.

• Dividend Earnings. The HYC Account offers a tiered dividend structure. Dividends for qualifying accounts will be earned and paid based on balances as set forth above. If all the qualification requirements are not met during the monthly cycle, the account will earn the non-qualifier dividend rate, as set forth above. Dividends will be paid on the last day of the monthly qualification cycle.

• Fees and Charges. Applicable fees and charges set forth in this Disclosure will be assessed against your account(s). A copy of the Credit Union’s Fee Schedule is provided at account opening or by contacting us at 1-877-964-3262.

Qualification Information:

To earn your HYC account rewards, the following enrollments must be in place and all transactions and activities must post and settle to your HYC account during the monthly qualification cycle:

• Have enrolled and agree to receive eStatements rather than paper statements;
• Access digital banking and review account;
• Have at least 1 ACH debit or credit; and
• Conduct at least 15 debit card purchases

“Monthly Qualification Cycle” means a period beginning the first day of the current statement cycle through the last day of the current statement cycle.

• Activity Posting: Account transactions and activities may take one or more days to post and settle to the account and must do so during the monthly qualification cycle in order to qualify for the account’s rewards. Transactions bundled together by merchants and received by our institution as a single transaction counts as a single transaction for the purpose of earning account rewards.
• Unqualified Account Activities: The following activities do not count toward earning account rewards: ATM process transactions, transfers between accounts, debit card purchases processed by merchants and received by our institution as ATM transactions, non-retail payment transactions and purchases made with debit cards not issued by our institution.

Reward Information:

When the High Yield Checking account qualifications are met during the monthly qualification cycle, you will receive:

• Average daily balances up to and including $15,000 in your HYC account earn a dividend rate of 3.936% resulting in an APY* of 4.01%; and average daily balances over $15,000 earn a dividend rate of 0.2497% on the portion of the average daily balance over $15,000, resulting in a dividend range from 4.01% to 0.25% APY. In order to earn a dividend, the dividend amount must be equal to or greater than $0.01.

• You will also receive reimbursements up to the aggregate total of $25 for nationwide ATM withdrawal fees incurred within your HYC Account during that monthly qualification cycle. If you have not received an appropriate reimbursement, we will adjust the reimbursement amount if we receive the transaction receipt within 60 calendar days of the withdrawal transaction. Dividends in nationwide ATM withdrawal fee reimbursements will be credited to your HYC Account on the last business day of the statement cycle.