Terms & Conditions

Important Information Regarding Ladder Certificates & Ladder IRA Certificates
 
Ladder Option 1/3-Yr Ladder - Requires that you open a 12, 24, and 36 month Ladder Certificate and deposit funds equally among each.

Ladder Option 2/5-Yr Ladder - Requires that you open a 12, 36, and 60 month Ladder Certificate and deposit funds equally among each.

Dividends - Dividends are calculated by the average daily balance method that applies a daily periodic rate to the average of the daily balances maintained each day during the month above a specified minimum threshold. Dividends begin to accrue on the business day you deposit funds into your account.

Unless withdrawn, dividends are compounded and paid monthly and at maturity after the close of business on the anniversary date of the certificate. For example, if a 6 month certificate is opened on March 12th, dividends will be paid each month on the 12th and again at maturity on September 10th.

Alternatively, you may choose to have dividends paid to you or to another account every month rather than credited to this account. For payments by Credit Union check to you, the dividend amount must be at least $50. Credited dividends of $10 or more are reported to the Internal Revenue Service and the Franchise Tax Board.

Rate Information - The Dividend Rate and the Annual Percentage Yield (APY) on your account(s) are available in North Island Credit Union’s Rates, Fees and Charges schedule. The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.

The Board of Directors determines the Dividend Rate and the APY at its sole discretion based on market conditions and other business factors. Rates are fixed for the term of the certificate.

Renewal - At renewal your Ladder Certificate will renew for a term equal to the longest term of the Ladder option chosen. For example, if you choose Ladder 1, the 12 and 24 month Ladder Certificates will renew as 36-month Ladder Certificate. The dividend rate will be the same we offer on new Ladder Certificate accounts on the maturity date within the same Ladder Certificate option which have the same term, minimum balance, and other features as the original certificate term.

You may prevent renewal if we receive written notice from you before maturity of your intention not to renew or you withdraw the funds in the account at maturity (or within the grace period, 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 deposit account or mailed to you.

If you elect not renew any certificate within your ladder, the remaining certificates will not be eligible for the ladder rates at maturity. The remaining certificates will renew into a Share, Saver, or IRA Certificate based on the minimum balance requirement of that product. If no product is available for the term of your Ladder Certificate, we may, at our option, transfer the funds into one of your deposit accounts open a Share Savings account on your behalf if you do not already have another deposit and deposit the funds into that account or mail a check to you for the balance of the certificate.

Fees & Charges - The account is subject to fees as detailed in the Fees and Charges schedule.

¹Minimum Balance Requirements - The minimum balance that is required to open this account is $1,000. You must deposit equal amounts into each certificate within the Ladder option you choose. You must maintain a minimum daily balance of $1,000 in your account each day to obtain the disclosed annual percentage yield.

Transaction Limitations - You can only withdraw dividends credited in the term before maturity without penalty. You can withdraw dividends anytime during the term after they are credited to your account. This dividend withdrawal limitation does not apply if you have made arrangements to have dividends paid to you or to another account in lieu of having them credited to this account.

Early withdrawal penalties - We may impose a penalty if you withdraw any of the principal before the maturity date. For all accounts, the amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows:

Maturity date one year or less: 90 days dividends
Maturity date more than one year: 180 days dividends

The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends to cover the penalty, or if the dividend has already been paid, the penalty will be deducted from the principal.

At our option, we may allow full withdrawal before maturity without imposing an early withdrawal penalty under the following circumstances:

     i. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
     ii. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven days after establishment or the owner becomes legally disabled.

For any account that earns a dividend rate that may vary from time to time during the term, the dividend rate we will use to calculate this early withdrawal penalty will be the dividend rate in effect at the beginning of the term.

You will have a grace period of seven calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty.

Additional Deposits - No additional deposits are permitted during the term of the certificate.

Nontransferable/Nonnegotiable - Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.