Thursday, August 28, 2008 

Rate Information – This is a VARIABLE RATE account.  The interest rate and APY may change during the term of certificate of deposit.  The interest rate is determined by the Asset/Liability Committee of Ameriana Bank, SB and may change monthly.  There are no “floors, caps or minimum/maximum periodic rate change amounts” applied to this account.  Current rates may be obtained from Bank employees or the website.  The initial APY assumes interest will remain on deposit until maturity and does not vary.  A withdrawal will reduce earnings and may affect the APY.

 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 provided above) 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 to your Ameriana checking, savings or AmeriPlus account

-Interest will be transferred at maturity 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.  Noncash items* presented for deposit will be sent for collection prior to deposit (rates may change during this waiting period).

Minimum Balance Requirements – The minimum balance required to open and maintain this account is $1.00.   

Transaction Limitations – Contributions (additions) of at least $1.00 are permitted during the term.  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 59½ 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.

 

*Deposit balances exceeding $100,000 may not be covered by FDIC insurance.  Address any questions regarding this issue with your Customer Service Representative or the Banking Center Manager.
**A noncash item is an item such as a check or demand item to which a passbook, certificate or the document is attached; a check or other demand item which is accompanies by special instructions (such as a request for special advise of payment or dishonor); or any similar item which is otherwise classified as a noncash item in the regulations of the Federal Reserve Board.  Another example would be a check not having the Bank's routing symbol transit number, etc. on the MICR line appear in magnetic ink on the check prior to receipt by the Fed.

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