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.
View SourceView Similar (3)
Daily Balance Method. DEFINITIONS (continued)
View Source
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.
View Source
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.
View Source
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.
View Source

Related to Daily Balance Method

  • Daily Balance For each day a DPR is in effect, we figure the daily balance by: ● taking the beginning balance for the day, ● adding any new charges, ● subtracting any payments or credits; and ● making any appropriate adjustments. We add a new charge to a daily balance as of its transaction date. For the first day of a billing period, the beginning balance is the ending balance for the prior billing period, including unpaid interest. For the rest of the billing period, the beginning balance is the previous day's daily balance plus an amount of interest equal to the previous day's daily balance multiplied by the DPR for that balance. This method of figuring the beginning balance results in daily compounding of interest.

  • Annual Percentage Rate Each Receivable has an APR of not more than 25.00%.

  • Available Balance Your account’s Available Balance is our most current record of the amount of money in your account that is available for use or withdrawal (subject to the additional limitations and restrictions set forth in this Agreement, including as further explained in the Disclosures and Schedules, including without limitation, “What You Need to Know About Overdraft Protection”; “Electronic Fund Transfers Agreement and Disclosures”; and “Funds Availability Policy”). The account’s Available Balance includes adjustments for factors such as restrictions or holds placed on deposited funds in your account, and restrictions or holds placed on funds in your account as a result of preauthorization holds in connection with the use of your Debit Card. Each of these restrictions and holds affects (reduces) the availability of funds in your account for use or withdrawal, including without limitation, to pay for checks drawn on your account, debits, Debit Card purchases, ACH transactions, ATM withdrawals, fees, and any other withdrawal or payment transactions on your account. We use the account’s Available Balance to authorize your transactions during the day, to pay your transactions in our nightly / daily processing, in determining whether the account has been overdrawn, and in assessing fees in connection with any overdrafts. IT IS VERY IMPORTANT TO UNDERSTAND THAT YOU MAY STILL OVERDRAW YOUR ACCOUNT EVEN THOUGH THE ACCOUNT’S AVAILABLE BALANCE APPEARS TO SHOW THERE ARE SUFFICIENT FUNDS TO COVER A TRANSACTION THAT YOU WANT TO MAKE. Your account’s Available Balance may not reflect every transaction you have initiated or previously authorized, including without limitation, your outstanding checks, automatic bill payments that you have authorized, authorized automatic withdrawals (such as recurring Debit Card transactions, transfers, and ACH transactions that we have not received for payment or received too close to our nightly/daily processing to include in your account’s Available Balance), the final amounts of Debit Card purchases (e.g., we may authorize a purchase amount prior to a tip you add or a gasoline purchase that exceeds the authorization amount). For example, an outstanding check will not be reflected in your Available Balance until it is presented to us and paid from your account. Your account’s Available Balance also may not reflect recent deposits to your account that are subject to our Funds Availability Policy. Therefore, in order to avoid fees and/or overdrawing your account, it is imperative that you take into account the availability of funds in your account under the terms of this Agreement and keep track of each deposit, use, transaction, and withdrawal (including without limitation, checks drawn on your account, debits, Debit Card purchases, ACH transactions, ATM withdrawals, fees, and any other withdrawal or payment transactions on your account), because you as the account Owner(s) is/are in the best position to know each of the activities occurring (or that have been scheduled and/or authorized to occur) on your account, and therefore, the funds available for use or withdrawal. Even though your account’s Available Balance may not reflect each of these transactions, you must insure that, at all times, your Available Balance is sufficient to pay your authorized transactions. a. Preauthorization Holds. As more fully explained in the Preauthorization Holds paragraph of the “Electronic Fund Transfers Agreement and Disclosures” in the Disclosures and Schedules, when you use your Debit Card at certain merchants, the merchant may request a preauthorization hold from us in an amount that is the exact amount of the transaction, is less than the anticipated transaction amount or in an amount the merchant believes you might spend with them. The preauthorization hold may remain in place on your account for up to three (3) days, even after the transaction has been posted to your account. In some cases, the hold on Debit Card transaction is released prior to the merchant presenting the transaction for payment. When we receive transactions after the hold is released we must pay the merchant. These preauthorization holds affect (reduce) the availability of funds in your account, including without limitation, to pay for checks drawn on your account, debits and Debit Card purchases, ACH transactions, ATM withdrawals, fees, and any other withdrawal or payment transactions on your account. You cannot access funds that are subject to a preauthorization hold since they are not available funds. You must ensure that, at all times, sufficient funds are available (including to cover any preauthorization holds placed on the account) and remain in your account to pay for your Debit Card transactions. An authorization is not an indication or a guarantee that a purchase will not result in additional fees being charged to or debited from your account when the transaction is posted to your account. For example, if a preauthorization occurs, and subsequent transactions are posted to your account before the pending transaction (that was the subject of the preauthorization) is posted, causing the account’s Available Balance to fall below $0, a fee will be assessed when the pending transaction does post to the account (and fees may also be assessed for the additional intervening transaction(s) to the extent they resulted in a negative Available Balance at the time they posted to the account). For example, you purchase gasoline from a merchant and the merchant obtains an authorization for $1 and you purchase $50 in gasoline. When the item is received it is for an amount greater than the authorization. If the amount of the transaction causes the Available Balance to fall below $0, a fee will be assessed.

  • Carry Forward to a Subsequent Year If you do not withdraw the excess contribution, you may carry forward the contribution for a subsequent tax year. To do so, you under-contribute for that tax year and carry the excess contribution amount forward to that year on your tax return. The six percent excess contribution penalty tax will be imposed on the excess amount for each year that it remains as an excess contribution at the end of the year. You must file IRS Form 5329 along with your income tax return to report and remit any additional taxes to the IRS.

  • Accrual Rate Compensatory time for employees will accrue at the rate of one and one-half hours for each one hour of overtime worked.