Thursday, August 28, 2008 

Rate Information –  Your interest rate will apply until the certificate of deposit matures (540 days).  The APY assumes interest will remain on deposit until maturity.  A withdrawal will reduce earnings and may affect yield. 

You  may choose one of the following relative to distribution of earned interest:

-Interest will be credited to your account quarterly and at maturity. 

If you choose one of the following options, your account’s APY will equal the interest rate (not APY) and may result in federally required premature distribution penalties.

-Interest will be paid by monthly check

-Interest will be paid by quarterly check

-Interest will be transferred monthly to your Ameriana checking, savings or AmeriPlus account

-Interest will be transferred quarterly to your Ameriana checking, savings or AmeriPlus account

  Interest Calculation – Interest will compound and post quarterly on this account.  The balance computation method used to calculate interest is the daily balance method based on a 365 or 366 day year.  This method applies a daily periodic rate to the principal in the account every day.  Interest is earned from the date of deposit to the date of withdrawal for this account, including accounts opened with checks (cash items).  Noncash items will be sent for collection prior to deposit.  Accrued, but uncredited, interest during the 10 day grace period will be lost if the account is closed and the money taken; however, if the money is reinvested in another Ameriana product the interest for days in the grace period will be paid.

 Minimum Balance Requirements – The minimum balance required to open and maintain this account is $500.00.  A minimum balance of $5,000 is required to be eligible to receive a monthly check. 

 Transaction Limitations – Withdrawals of principal and credited interest may be permitted from the account without penalty subject to federal IRA regulations.

 Early Withdrawal Penalty – Forfeiture of 182 days simple interest, earned or not, on principal withdrawn prior to maturity, regardless of the length of time the funds withdrawn have remained in the account.  Penalty is waived for retirement accountholders age 59 ½ and older for those certificates designated as Retirement Accounts.  Penalty is waived in the event of death or adjudication of incompetence of an accountholder.

 Renewal Policy – This account will automatically renew at maturity.  You have a grace period of ten (10) calendar days after the maturity date to withdraw the funds without being charged a penalty.

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