The Dividend Rate and Annual Percentage Yield (APY) on your accounts are set forth within and are subject to change. The Dividend Rates and Annual Percentage Yields applicable to the account depends on the balance range as set forth within. Once a balance range is met, the rate tier will apply to the entire account balance. For Certificate accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For Certificate Accounts, the Annual Percentage Yield is based on an assumption that interest will remain on deposit for one year. A withdrawal of dividends will reduce earnings.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. The Dividend Rate and Annual Percentage Yield set forth within are the prospective rates that the Credit Union anticipates paying for the applicable dividend period.
Dividend Non-Payment Rule: On member’s deposits represented by a deposited check that is later dishonored, the Credit Union may determine not to pay dividends on the check amount for the time period the check was outstanding.
Compounding and Crediting: Dividends will be compounded monthly and credited monthly. The dividend period begins on the first calendar day of the month and ends on the last calendar day of the month. Dividends shall be paid on the full balance in the account for each day the accounts meet the minimum balance requirements.
Accrual of Dividends: Dividends on cash deposits will begin accruing when the deposit is received. Dividends on non-cash items--such as checks, drafts and remote deposits--may start accruing on the day the Credit Union receives provisional credit. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
The minimum balance required to open each account and the method of dividend computation are listed on the Deposit Rates page. We use either the daily balance method or the average daily balance method to calculate the interest on your account, as follows:
Daily Balance: This method applies a daily periodic rate to the principal in the account each day.
Average Daily Balance: This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.