TRUTH-IN-SAVINGS POLICY (Disclosure)

SHARE ACCOUNTS DIVIDEND INFORMATION

The following dividend information applies to all share and transaction accounts unless otherwise indicated in the Specific Account Requirements of this disclosure.

Share and Transaction Accounts include: Regular Share Savings Account, Non-Dividend Regular Share Savings Account, Youth Share Savings Account, Club Share Account, IRA Share Account, Money Market Account, Share Draft Account & Non-Dividend Share Draft Account.

Rate Information:

The dividend rate and annual percentage yield may change every dividend period (as stated in separate Dividend Rate & Fee Schedule). We may change the dividend rate for your accounts as determined by the credit union’s board of directors.

Compounding and crediting:

Dividends will be compounded as indicated in the Specific Account Requirements of this disclosure. 

Dividend period:

The dividend period of your accounts is either quarterly or monthly, or as specified in the Specific Account Requirements of this disclosure.

Quarterly Dividend Period – For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the last day of the dividend period for the example above is March 31. The last day of the dividend period is also the dividend posting date. If you close your share account before dividends are paid, you will forfeit the accrued dividends.

 Monthly Dividend Period – For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the last day of the dividend period and for the example above is January 31. The last day of the dividend period is also the dividend posting date. If you close your share account before dividends are paid, you will forfeit the accrued dividends.

Average daily balance computation method:

Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

Accrual of dividends on noncash deposits:

Dividends will begin to accrue on the business day you place noncash items (for example, checks) in your account.

 SPECIFIC ACCOUNT REQUIREMENTS

REGULAR SHARE SAVINGS ACCOUNT

Compounding and crediting:

Dividends will be compounded every quarter. Dividends will be credited to your account every quarter.

Dividend period:

For this account type, the dividend period is quarterly.

Minimum balance requirements:

The minimum balance required to open this account is $5.00. You must maintain a minimum average daily balance (as stated in separate Service Fees & Charges brochure) in your account to obtain the disclosed annual percentage yield. There will be a Below Minimum Balance Fee assessed to this account, as stated in the separate Service Fees & Charges brochure when the minimum balance falls below $5.00. You must maintain a minimum daily balance of $5.00 in the account at all times to maintain your status as a member in good standing and to be eligible for other credit union services.

Transaction limitations:

Non-transaction limitations apply to this account unless otherwise stated in the Common Features section.

Par value of a share:

The par value of a share in this account is $5.00.

NON-DIVIDEND REGULAR SHARE SAVINGS ACCOUNT

Minimum balance requirements:

The minimum balance required to open this account is $5.00. There will be a Below Minimum Balance fee assessed to this account (as stated in the separate Service Fees & Charges brochure) when the minimum balance falls below $5.00. You must maintain a minimum daily balance of $5.00 in the account at all times to maintain your status as a member in good standing and to be eligible for other credit union services.

Transaction limitations:

No transaction limitations apply to this account unless otherwise stated in the Common Features section.

Par value of a share:

The par value of a share in this account is $5.00.

YOUTH SHARE ACCOUNT

Compounding and crediting:

Dividends will be compounded every quarter. Dividends will be credited to your account every quarter.

Dividend period:

For this account type, the dividend period is quarterly.

Minimum balance requirements:

The minimum balance required to open this account is $5.00. You must maintain a minimum average daily balance (as stated in separate Service Fees & Charges brochure) in your account each day to obtain the disclosed annual percentage yield. There will be a Below Minimum Balance fee assessed to this account, as stated in the separate Service Fees & Charges brochure when the minimum balance falls below $5.00. You must maintain a minimum daily balance of $5.00 in the account at all times to maintain your status as a member in good standing and to be eligible for other credit union services.

Transaction limitations:

No transaction limitations apply to this account unless otherwise stated in the Common Features section.

Par value of a share:

The par value of a share in this account is $5.00.

CLUB SHARE ACCOUNT

Compounding and crediting:

Dividends will be compounded every quarter. Dividends will be credited to your account every quarter.

Dividend period:

For this account type, the dividend period is quarterly.

Minimum balance requirements:

The minimum balance required to open this account is $5.00.

You must maintain a minimum average daily balance (as stated in separate Dividend Rate and Fee Schedule) in your account each day to obtain the disclosed annual percentage yield. You must maintain a balance of $5.00 in your account at all times. There will be a Below Minimum Balance fee assessed to this account, as stated in the separate (Service Fees & Charges brochure) when the minimum balance falls below $5.00.

Transaction limitations:

Transaction limitations apply to this account. A penalty fee will be assessed for early withdrawal of funds prior to designated transfer date (maturity date). Please refer to separate Service Fees & Charges brochure for information about charges.

Time Requirements:

Christmas Club Account will mature on the first Friday in November of each year.

Vacation Club Account will mature on the first Friday in June of each year.

Automatically renewable account:

This account will automatically renew at maturity. You will have a grace period of 30 calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty. If either you or we prevent renewal, your funds will be placed in a dividend-bearing account. Each renewal term will be the same as the original term, beginning on the maturity date. All funds except the minimum required amount will transfer to the regular share account at transfer date. The dividend rate will be the same we offer on the maturity date which have the same term, minimum balance (if any) and other features as the original Club Share account.

INDIVIDUAL RETIREMENT (IRA) SAVINGS ACCOUNT

Rate Information:

Dividends are declared by the Board of Directors at the end of each quarter for the following quarter.

Compounding and crediting:

Dividends will be compounded every quarter. Dividends will be credited to your account every quarter.

Dividend period:

For this account type, the dividend period is quarterly.

Minimum balance requirements:

The minimum balance required to open this account is $5.00.

You must maintain a minimum average daily balance of $5.00 in your account to obtain the disclosed annual percentage yield.

Transaction limitations:

You may not make any withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer, telephonic order or instruction, or similar order to a third party.

MONEY MARKET ACCOUNT

Compounding and crediting:

Dividend will be compounded every month. Dividends will be credited to your account every month.

Dividend period:

For this account type, the dividend period is monthly.

Minimum balance requirements:

The minimum balance required to open this account and any required minimum to avoid a service fee are set for the in the (Service Fees & Charges brochure). You must maintain the minimum average daily balance in your account, as stated in the Dividend Rate & Fee Schedule to obtain the disclosed annual percentage yield. There will be a Below Minimum Balance Fee assessed to this account, as stated in the separate Service Fees & Charges brochure, when the minimum balance falls below the minimum required balance.

Transaction limitations:

During any month, you may not make more than six withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic order or instruction. No more than three of the six transfers may be made by check, draft, debit card or similar order to a third party. If you exceed the transfer limitations set forth above, your account will be subject to closure by the credit union.

Fees and charges:

A service fee will be assessed for each transaction in excess of six during a month. Please refer to a separate Service Fees & Charges brochure for information about charges. The credit union may require a sixty (60) day notice, in writing, of intent to withdraw funds from this account.

SHARE DRAFT ACCOUNT

Compounding and crediting:

Dividends will be compounded every month. Dividends will be credited to your account every month.

Dividend period:

For this account type, the dividend period is monthly.

Fees and charges:

A monthly service fee will be assessed at the end of the month. Please refer to a separate Service Fees & Charges brochure for information about charges.

Minimum balance requirements:

No minimum balance requirements on this account, unless specified in the Dividend Rate & Fee Schedule.

Transaction Limitations:

No transaction limitations apply to this account unless otherwise stated in the Common Features section.

NON-DIVIDEND SHARE DRAFT ACCOUNT

Minimum balance requirements:

No minimum balance requirements apply to this account, unless specified in the Dividend Rate & Fee Schedule.

Transaction Limitations:

No transaction limitations apply to this account unless otherwise stated in the Common Features section.

NON-PERSONAL SHARE DRAFT ACCOUNT

Minimum balance requirements:

No minimum balance requirements apply to this account, unless specified in the Dividend Rate & Fee Schedule.

Transaction Limitations:

No transaction limitations apply to this account unless otherwise stated in the Common Features section.

TERM SHARE CERTIFICATE DIVIDEND INFORMATION

The following dividend information applies to all term share certificate accounts unless otherwise stated in the Specific Account Requirements of this disclosure.

Rate Information:

Please refer to our separate Dividend Rate & Fee Schedule for current Annual Percentage Rate and Annual Percentage Yield information. Rates may change at any time as determined by us. The Annual Percentage Rate (APR) and Annual Percentage Yield (APY) on your term share certificate account are stated on the account summary section of your corresponding Term Share Certificate Agreement. You will be paid this rate until maturity. For all Term Share Certificates, the APR and APY are fixed and will be in effect for the term of the account. The APY 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 an annual period. The APY is based on the assumption that interest will remain on deposit until maturity. A withdrawal of interest will reduce earning.

Compounding frequency:

Unless otherwise paid and stated on your Term Share Certificate Agreement or as specified in the Specific Account Requirements of this disclosure, dividends will not be compounded.

Crediting frequency:

Unless otherwise paid and stated on your Term Share Certificate Agreement, dividends will be credited to your account at maturity. Alternatively, you may choose to transfer to another account dividends paid on this account rather than credit to this account.

Dividend period:

The dividend period is as specified in your Term Share Certificate Agreement.

Minimum balance requirements:

There is a minimum balance required to open any term share certificate. Please refer to our separate Dividend Rate and Fee Schedule for this information. You must maintain a minimum daily balance (as stated in Dividend Rate & Fee Schedule) in your account each day to obtain the disclosed annual percentage yield.

Daily 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.

Transaction limitations:

After the account is opened, you may not make additional deposits into the account until the maturity date stated on the account, unless otherwise indicated in the Specific Account Requirements of this disclosure. You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. You can only withdraw dividends before maturity if you make arrangements with us for periodic payments of dividends in lieu of crediting.

Time requirements:

Your account will mature on the date stated on your Term Share Certificate Agreement.

Early withdrawal penalties:

A penalty may be imposed for withdrawals before maturity. If there is enough accrued interest to cover the penalty, we deduct the penalty from it. If not, we deduct the remainder of the penalty from the principal. The penalty we may impose will be: all dividends that have been earned not to exceed 90 days or all dividends that have been earned not to exceed 180 days, as specified in the Specific Account Requirements of this disclosure. In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax qualified plan.

Withdrawal of dividends prior to maturity:

The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.

Automatically renewable account – This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any) or we receive written notification from you before maturity or within the grace period mentioned below, if any. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, your funds will be placed in a dividend-bearing account. Each renewal term will be the same as the original term, beginning on the maturity date. The dividend rate will be the same we offer on new term share accounts on the maturity date which have the same term,

minimum balance (if any) and other features as the original term share account. There is no grace period following the maturity of this account during which you may withdraw funds without being charged an early withdrawal penalty.

Accrual of dividends of noncash deposits:

Dividends will begin to accrue on the business day you place noncash items (for example, checks) to your account.

SPECIFIC ACCOUNT REQUIRMENTS

TERM SHARE CERTIFICATE

Minimum balance requirements:

The minimum balance required to open this account is $1,000.00. You must maintain a minimum daily balance (as stated in separate Dividend Rate & Fee Schedule) in your account to obtain the disclosed annual percentage yield.

Early withdrawal penalties:

The penalty we may impose will be all dividends that have been earned not to exceed 90 days. If there is enough accrued interest to cover the penalty, we deduct the penalty from it. If not, we deduct the remainder of the penalty from the principal.

CD PLUS TERM SHARE CERTIFICATE

Rate information:

The CD Plus Term Share Certificate offers the option to increase the annual percentage rate of your certificate once during the original term. If the published rate for a CD Plus Term Share Certificate is higher than your original rate, with the same term, you may notify us to increase the rate on your CD Plus Term Share Certificate to the higher rate. You will earn the higher rate for the remainder of your original term. This exchange will be at no cost to you. If you make an exchange, the maturity date of this account will remain the same as original scheduled. You may exercise this exchange option once during each term (the original term and each renewal term).

Minimum balance requirements:

The minimum balance required to open this account is $5,000.00. You must maintain a minimum daily balance (as stated in separate Dividend Rate & Fee schedule) in your account to obtain the disclosed annual percentage yield.

Early withdrawal penalties:

The penalty we may impose will be all dividends that have been earned not to exceed 180 days. If there is enough accrued interest to cover the penalty, we deduct the penalty from it. If not, we deduct the remainder of the penalty from the principal.

Transaction Limitations:

You are allowed to make additional deposits to your CD Plus Term Share Certificate, with a minimum deposit of $1,000.00 and there are no limitations on the frequency of timing of additions. You will earn dividends on the total balance of your CD Plus Term Share Certificate from the date of that additional deposit through the maturity date for the certificate.

YOUTH CD PLUS TERM SHARE CERTIFICATE

Rate information:

The CD Plus Term Share Certificate offers the option to increase the dividend rate of your certificate once during the original term. If the published rate for a CD Plus Term Share Certificate is higher than your original date, with the same term, you may notify us to increase the rate of your CD Plus Term Share Certificate to the higher rate. You will earn that higher rate for the remainder of your original term. This exchange will be at no cost to you. If you make an exchange, the maturity date of this account will remain the same as originally scheduled. You may exercise this exchange option once during each term (the original term and each renewal term).

Minimum balance requirements:

The minimum balance required to open this account is $100.00. You must maintain a minimum daily balance (as stated in separate Dividend Rate & Fee Schedule) in your account to obtain the disclosed annual percentage yield.

Compounding frequency:

Dividends will be compounded quarterly.

Crediting frequency:

Dividends will be credited to your account quarterly. Alternatively, you may choose to transfer to another account dividends paid on this account at quarterly.

Dividend period:

For this account type, the dividend period is quarterly.

Minimum balance requirements:

The minimum balance required to open this account is $100.00.

You must maintain a minimum daily balance of $100.00 in your account each day to obtain the disclosed annual percentage yield.

Transaction limitations:

The minimum amount of additional deposits is $25.00. There are no limitations on the frequency or timing of additions. You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. You can only withdraw dividends before maturity if you make arrangements with us for periodic payments of dividends in lieu of crediting.

Early withdrawal penalties:

The penalty we may impose will be all dividends that have been earned to exceed 180 days. If there is enough accrued interest to cover the penalty, we deduct the penalty from it. If not, we deduct the remainder of the penalty from the principal.

IRA TERM SHARE CERTIFICATE

Account condition:

You must have an Individual Retirement (IRA) Savings Account open in order to set up an IRA Term Share Certificate. Refer to IRA Savings Account above for specific account disclosure.

Minimum balance requirements:

The minimum balance required to open this account is $1,000.00. You must maintain a minimum daily balance (as stated in separate Dividend Rate & Fee Schedule) in your account to obtain the disclosed annual percentage yield.

Early withdrawal penalties:

The penalty we may impose will be all dividends that have been earned not to exceed 90 days.

COMMON FEATURES

Bylaw requirements:

You must complete a deposit of one share in your Regular Share Savings account as a condition of admission to membership. The balance in your Share Savings account may be absorbed by a fee upon authorization of the Board if it falls below the par value of one share, and you do not increase the balance to at least the par value of one share within six months of the reduction. A member who reduces the share balance below the par value of one share and does not increase the balance to at least the par value of one share within 90 days of the reduction will be terminated from membership.

Transaction limitation:

We reserve the right at any time to require not less than seven days’ notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D.

Nature of dividends:

Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.

National Credit Union Share Insurance Fund:

Member accounts in this credit union are federally insured by the National Credit Union Share Insurance Fund.

Overdraft Fee Transaction Categories – The categories of transactions for which an overdraft fee may be imposed are: share draft/check, in-person withdrawal, ATM withdrawal, ACH, automatic bill payment and/or other electronic means. Please refer to our separate Overdraft Policy and Service Fees and Charges brochure for additional information on BFCU’s Overdraft Plans.