Share Certificate/IRA Share Certificate Terms


A substantial penalty is imposed if certificate funds other than dividends are withdrawn before the maturity date.  The penalty does not apply to the early withdrawal of funds subsequent to the death of any owner, if the funds are transferred to another account in the credit union.

If the term of the certificate is 36 months or less, the forfeiture is equal to six (6) month’s dividends, whether earned or note.  If the term of the certificate is OVER 36 months, the forfeiture is one (1) year’s worth of dividends.  Computation of forfeiture will always use the original face amount of the current term, unless a partial withdrawal is made.

For partial withdrawals, the principal amount upon which the forfeiture is calculated is the amount withdrawn, unless the amount withdrawn reduces the balance below $500.  In that event, the principal amount upon which the forfeiture is calculated is the entire amount of the certificate.  If the resulting certificate balance is lower than required for the “Tier” or Terms, the rate will be adjusted to the new balance tier at the remaining month term.

The Credit Union will give the owner(s) at least 20 days notice prior to maturity.  The notice will inform the owner(s) of the terms, if any, under which the credit union proposes to renew the certificate.  The owner may renew the certificate at maturity, or elect to have the funds transferred to another share account, or have all funds paid directly to the member by check.


If you certificate is an IRA and you have reached 70 ½ (or will reach that age in this calendar year) and you are required to take a mandatory distribution, you MUST contact the Credit Union to set aside funds from the certificate for this purpose.  The Credit Union is not responsible for making this decision for you.  Annual account IRA Fees and IRA closing fees will be applied to IRA Certificates, if you do NOT have a non-term IRA account.  (See Share Account Disclosure)

You will be notified at least 20 days before the Certificate Maturity date.  Unless we are directed, on or within 10 days of maturity, that you want to change the terms, the certificate will automatically be rolled over at the current rates, then, and for the same term, if available.  Your deposits are insured up to $250,000.00 per account, by American Share Insurance (ASI), the largest private insurer of deposits in the US.  This institution is not federally insured and if the institution fails the federal government does not guarantee you will get your money back.