Account Disclosures
Coverdell Education Account
Rate Information: The dividend rate and annual percentage yield on this account is set forth above. Your dividend rate and annual percentage yield may change at any time.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield are the prospective rates and yield the credit union anticipates paying for the applicable dividend period.
Compounding and Crediting: Dividends will be compounded and credited monthly. The dividend period for this account is monthly beginning on the first day the month and ending on the last day of the month.
Accrual of Dividends: Dividends will begin to accrue on non-cash deposits on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
Contributions: The maximum amount that can be contributed each year to a child’s Coverdell ESA is $2,000 per calendar year. If your modified adjusted gross income is over $95,000 for single filers or $190,000 for joint filers, the amount you can contribute will be less.
Balance Calculation 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: Penalties assessed for any withdrawal made during the first five years will be six months interest on the amount withdrawn based on the current prospective rate. Penalties assessed for any withdrawal made after five years will be three months interest on the amount withdrawn based on the current prospective rate. There will be an annual grace period of 10 calendar days beginning with the beneficiary’s birthday. Penalties will not be assessed for Qualified Withdrawals.
Qualified Withdrawals: Qualified withdrawal not subject to penalty must be used for education expenses including tuition, fees, books, and equipment required for enrollment or attendance at nearly any post-secondary educational institution (public, nonprofit, or proprietary). Certain room and board expenses also may qualify. Qualified expenses also include these same expenses for elementary and secondary education and the purchase of computer technology or equipment that is used by the beneficiary and the beneficiary’s family while the beneficiary is in school.
For further information, call a Member Services Representative at (800) 824-2575.
Health Savings Account
Rate Information: The Dividend Rate and Annual Percentage Yield on your accounts are set forth above. The Dividend Rate and Annual Percentage Yield may change monthly as determined by the Board of Directors.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield are the prospective rates and yields the credit union anticipates paying for the applicable dividend period.
Compounding and Crediting: Dividends will be compounded and credited monthly. The dividend Period for all accounts is monthly beginning on the first calendar day of the month and ending on the last calendar day of the month.
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.
Accrual of Dividends on Non-cash Deposits: Dividends will begin to accrue on the business day you place non-cash items (for example, checks) in your account.
Balance Information: The minimum balance required to open each account is set forth above. The minimum monthly balance required to maintain the account is set forth above. If you close your account before dividends are paid, you will not receive the accrued dividends.
Credit Union membership is required for any credit union accounts. Minimum balance of $25.00 in prime shares required for membership.
Money Market Account
Rate Information: The dividend rate and annual percentage yield on this account is set forth above. Your dividend rate and annual percentage yield may change at any time.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield are the prospective rates and yield the credit union anticipates paying for the applicable dividend period.
Compounding and Crediting: Dividends will be compounded and credited monthly. The dividend period for this account is monthly beginning on the first day of each month and ending on the last day of each month.
Accrual of Dividends: Dividends will begin to accrue on non-cash deposits on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
Balance Information: 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 determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in the period.
Transactions Limitations: During any calendar month, you may make up to six withdrawals per month. The minimum withdrawal amount is $500.00. Your account will be charged $5.00 for each transaction that exceeds these limits. If you overdraw your money market account, the fee is $27 per occurrence.
Checks on this account are optional and will be ordered upon request at the member’s expense.
For further information, call a Member Services Representative at (800) 824-2575.
Roth IRA Account
Rate Information: The dividend rate and annual percentage yield on this account is set forth above. Your dividend rate and annual percentage yield may change at any time.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield are the prospective rates and yield the credit union anticipates paying for the applicable dividend period.
Compounding and Crediting: Dividends will be compounded and credited monthly. The dividend period for this account is monthly beginning on the first day of each month and ending on the last day of each month.
Accrual of Dividends: Dividends will begin to accrue on non-cash deposits on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
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: Penalties assessed for any withdrawal made during the first five years will be six months interest on the amount withdrawn based on the current prospective rate. Penalties assessed for any withdrawal made after five years will be three months interest on the amount withdrawn based on the current prospective rate. There will be an annual grace period of 10 calendar days beginning with the IRA owner’s birthday. Penalties will not be assessed for Qualified Withdrawals. No penalty will be assessed if closing an account with less than $100 balance.
Qualified Withdrawals: Qualified withdrawal not subject to penalty must be made five years after the account has been established and be considered by the IRS as a qualified tax free distribution. These include:
Withdrawals made after the IRA owner reaches the age of 59 1⁄2
The IRA owner dies
Up to $10,000 for a first time home purchase
For further education expenses
All other withdrawals, including direct transfers to another institution, will be subject to the above credit union penalties.
For further information, call a Member Services Representative at (800) 824-2575.
Term Share Account
Penalty: Penalties for early withdrawal are equivalent of 90 days dividends on the amount withdrawn except the 30 and 36 month term has 180 days interest penalty. Partial withdrawals are allowed provided the balance does not fall below the minimum balance of the tier as set at time of opening.
Rate information: Rates are as stated above and subject to change.
Compounding and Crediting: Dividends will be calculated daily, compounded and paid monthly. The dividend period begins the day the account is opened. The annual percentage yield (APY) assumes that the dividend remains on deposit until maturity.
Balance Computation Method: Advantage Credit Union uses the daily balance method to calculate the dividend on the account. This method applies daily periodic rate to the principal in the account each day.
Accrual of dividends: Dividends begin to accrue on the account opening date.
Transaction Limitations: You may make additional deposits to this account during the term. Withdrawals are subject to penalties set forth, excluding the 10 day grace period. Advantage Credit Union will waive the penalty if any account owner dies or may waive it if the owner is declared incompetent.
Maturity: The maturity date is based on calendar months from the opening date.
Renewal Policy: The account will automatically renew on the maturity date. Each renewal term will be the same as the original one at the current rate as of the renewal date. You will have a 10 day grace period. Advantage Credit Union will mail out a renewal letter at least 10 days before maturity.
For further information, please call a Member Services Representative at (800) 824-2575.
Credit Union membership is required for any credit union accounts. Minimum balance of $25.00 in prime shares required for membership. Rates subject to change.
Individual Retirement Account
Rate Information: The dividend rate and annual percentage yield on this account is set forth above. Your dividend rate and annual percentage yield may change at any time.
Nature of Dividends: Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. The dividend rate and annual percentage yield are the prospective rates and yield the credit union anticipates paying for the applicable dividend period.
Compounding and Crediting: Dividends will be compounded and credited monthly. The dividend period for this account is monthly beginning on the first day of each month and ending on the last day of each month.
Accrual of Dividends: Dividends will begin to accrue on non-cash deposits on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
Penalty for Withdrawals: The penalty for early withdrawal will be 90 days interest on the amount withdrawn for IRA accounts opened for 5 years or more. The penalty for early withdrawal will be 180 days interest on the amount withdrawn for IRA accounts opened less than 5 years.
Exceptions to the early withdrawal penalty are as follows:
There will be an annual grace period of 10 calendar days beginning with the IRA owner’s birthday.
You will not be subject to a Credit Union imposed penalty after age 59 1⁄2
Permanent disability of IRA owner.
Death of IRA owner
Balances less than $100
Balance Computation Method: Dividends are calculated by the daily balance method which applies a periodic rate to the balance in the account each day.
For further information, call a Member Services Representative at (800) 824-2575.