XYZ SAVINGS BANK
1-YEAR CERTIFICATE OF DEPOSIT
Rate information
- The interest rate for your account is 5.20%
with an annual percentage yield of 5.34%. You will be paid
this rate until the maturity date of the certificate. Your certificate
will mature on September 30, 1993. The annual percentage yield
assumes interest remains on deposit until maturity. A withdrawal will
reduce earnings.
- Interest for your account will be compounded daily
and credited to your account on the last day of each month.
- Interest begins to accrue on the business day you
deposit any noncash item (for example, checks).
Minimum-balance requirements
- You must deposit $1,000 to open this account.
- You must maintain a minimum balance of $1,000 in
your account every day to obtain the annual percentage yield listed
above.
Balance-computation method
- We use the daily-balance method to calculate the
interest on your account. This method applies a daily periodic rate
to the principal in the account each day.
Transaction limitations
- After the account is opened, you may not make deposits
into or withdrawals from the account until the maturity date.
Early withdrawal penalty
- If you withdraw any principal before the maturity
date, a penalty equal to three months’ interest will be charged to
your account.
Renewal policy
- This account will be automatically renewed at maturity.
You have a grace period of ten (10) calendar days after the maturity
date to withdraw the funds without being charged a penalty.
