CDARS

Full FDIC insurance on deposit accounts through the Certificate of Deposit Account Registry Service (CDARS).

Benefits

• One Bank

Everything is handled through our bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of a special network. Then, those member banks issue CDs in amounts so that your entire investment is eligible for FDIC insurance. By working with just one bank—our bank—you can receive insurance from many.

• One Rate

You earn one rate on your entire investment so you can forget about multiple rate negotiations and the need to consolidate multiple disbursement checks.

• One Statement

You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned and other details. With CDARS, there’s no need to manually consolidate statements, track changing collateral values, or use private surety bonds.

Please contact one of our branches for additional information.

 

Early Withdrawal Penalties

Early Withdrawal Penalties on CD accounts may be imposed for withdrawals before maturity.

If your account has an original maturity of 31 days or less:

The Penalty we may impose is greatest of:

• Seven days interest on the amount withdrawn subject to penalty, if the withdrawal is made within the first six days after the deposit;
• All interest that could have been earned on the amount withdrawal during a period equal to one-half the maturity period; or
• All interest on the amount withdrawn subject to penalty.

If your account has an original maturity of one year or less:

• The fee we may impose will equal three months interest on the amount withdrawn subject to penalty.

If your account has an original maturity of more than one year:

• The fee we may impose will equal six months interest on the amount withdrawn subject to penalty.

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.

 

Renewable Accounts

1. Automatically Renewable Time 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 notice from you 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, interest will continue to accrue after maturity for up to ten calendar days. The interest rate will be the new rate.

You will have 10 calendar days after maturity to withdraw funds without penalty from a Certificate of Deposit.

2. Non-Automatically Renewable Time Account

 This account will not automatically renew at maturity. If you do not renew the account, interest will not continue to accrue after maturity.

 

^{*Certificate of Deposit Accounts interest rates are fixed for the term of the account. We use the daily balance method to calculate the interest on accounts. To determine the daily periodic rate, we divide the interest rate by the actual number of days in the year. We apply the daily periodic rate to the principal balance in the account each day. Interest begins to accrue on the business day you deposit non-cash items (for example, checks). The disclosed annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.}

^{Interest is accrued daily and credited to your Certificate of Deposit accounts quarterly. If you close your Certificate of Deposit account before interest is credited, you will not receive the accrued interest. For Certificates of Deposit accounts that are not automatically renewed, no interest will accrue after the maturity.}