Common use of Dividend Rate Information Clause in Contracts

Dividend Rate Information. The method by which dividends are paid, the dividend rate and the annual percentage yield are set forth in the Rate Schedule. The rates stated on the Rate Schedule at account opening will be paid until the first maturity date. The annual percentage yield is the 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. For current rate information, please call SAFE Federal Credit Union at 803.469.8600. The annual percentage yield is based on an assumption that dividends will remain on deposit until maturity. Withdrawal of dividends will reduce earnings. Nature of Dividends. Dividends are paid from current income and are dependent on available earnings after required transfers to reserves at the end of the dividend period. The dividend rate is determined by the SAFE Federal Credit Union’s Board of Directors and SAFE Federal Credit Union reserves the right to change dividend rates at any time. Dividend Period. For each account, the dividend period is the account’s term. The dividend period begins on the first day of the term and ends on the maturity date. Maturity Date. The maturity date for each certificate is stated on the share certificate. Balance Computation Method. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividend Compounding and Crediting. Dividends will be compounded in each account as set forth in the Rate Schedule. Dividends for all share certificates are credited monthly. You may choose to have dividends paid to you or to another account or suffix rather than credited to this share certificate account. If you close your share certificate before dividends are credited, accrued dividends will be paid. Accrual of Dividends. For all accounts, dividends begin to accrue on the business day you deposit cash or non-cash items (for example, checks) to your share certificate, regardless of the availability of funds. Minimum Balance Requirements. The minimum deposit required to open and maintain each share certificate is stated in the Rate Schedule. You must maintain these minimum balances in your account each day to obtain the annual percentage yield applicable to your account.