Truth in Savings Disclosure

what is an ira share certificate

IRA Share Certificates

Account Features

Rate - The dividend rate and Annual Percentage Yield (APY) are noted above and on your certificate. These rates will be paid until the date of maturity. The APY noted assumes interest dividends remain on deposit until maturity. A withdrawal will reduce earnings and APY.

Dividend Computation - Dividends will be calculated using the average daily balance method.

Compounding & Crediting - Dividends will be compounded monthly and credited monthly.

Early Withdrawal Penalty - The penalty we may impose is noted on your certificate disclosure. Some exceptions may apply.

Limits on Additions - You may not make additions to this certificate before the date of maturity.

Limits on Withdrawals - You may make early withdrawals of the principal only if we agree, subject to penalty. You may withdraw credited dividends anytime during the term without penalty. However, APY assumes dividends remain on deposit.

Automatically Renewable - Your account automatically renews at maturity. Each renewal term will be the same as the original term of this certificate. The dividend rate will be the rate we offer on a new certificate which has the same features as the renewed certificate on the maturity date. You will have a grace period of seven (7) calendar days after maturity to withdraw without penalty. To avoid automatic renewal, you may withdraw funds on the date of maturity or within your grace period or you may provide us with written notification, prior to the maturity date, instructing us how to distribute your funds on the date of maturity.


"We", "our", "us" mean the issuer of this account and "you", "your" mean the account holder(s). "Account" means the original certificate and the account relationship evidences. "Transfer" means any change in ownership, withdrawal rights, or survivorship rights, including any pledge or assignment of this account as collateral.

Primary Agreement

You agree to keep your funds with us in this account until the maturity date. Automatically renewable accounts mature at regular intervals. This account is void if the initial amount is deposited by any method requiring collection (such as a check) and the funds are not immediately collected in full. If any permitted addition is made or payable in a foreign currency, the amount will be adjusted to reflect final exchange into U.S. dollars. We may close this account if your membership in the credit union terminates, or by giving reasonable notice to you and tender the account balance personally or by mail. We may suspend your rights to member services if you violate the terms of this agreement. We may change any term of our bylaws or this agreement (our bylaws establish basic policies and operations that affect your account and membership). Rules governing changes in rates have been provided. For other changes, we will give you reasonable notice in writing or by other methods permitted by law. If notice is necessary, you agree the notice is sufficient if we mail it to the address on your account. You must keep us informed of your current address.

There are no additions allowed on this account.

You cannot transfer this account without first obtaining our written consent. Only those of you who sign the agreement may withdraw funds from this account. (In appropriate cases, a court appointed representative, a designated beneficiary whose right of withdrawal has matured, or a newly-appointed and authorized representative of a legal entity may also withdraw from this account). The specific number of you who must agree to any withdrawal is written on the certificate after the title "Number of endorsements required for withdrawal". This means, for example, that if two of you sign the agreement but only one endorsement is necessary for withdrawal, then either of you may request withdrawal of the entire account at any time. These same rules apply to define who can request or consent to a transfer.

Unless we agree otherwise in writing, each owner of this account may pledge all or any part of

the funds in it for any purpose to which we agree. Any pledge must first be satisfied before the rights of any joint survivor or designated beneficiary become effective.

Accounts That Automatically Renew

Earnings from one term that are not withdrawn will be added to the balance and will accrue earnings for the renewal term. Except where variable rate rules apply, we will determine the rate for each renewal on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the rate will be.

Ownership of Account and Beneficiary Designation

These rules apply to this account depending on the form of ownership and beneficiary designations, if any, specified. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except that they determine to whom we pay the account funds.

Joint Account - With Survivorship (And Not As Tenants In Common) - is an account in the name of two or more persons. Each of you intend that when you die, the balance in the account (subject to any previous pledge to which we have agreed) will belong to the survivor(s). If two or more of you survive, you will own the balance of the account as join tenants with survivorship and not as tenants in common.

Joint Account - No Survivorship (As Tenants in Common) - is owned by two or more persons, but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of signatures" necessary for withdrawal.

Revocable Trust or Pay-On-Death Account - If two or more of you create this type of account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, beneficiaries will own this account in equal shares, without right of survivorship. The person(s) creating either of these account types may: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time.

Right to Repayment

You each agree that we may (without prior notice and when permitted by law) charge against and deduct from this account any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such persons' or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balance the due date for which we properly accelerate under the note. In addition, we may also have rights under a "statutory lien". A "lien" is a creditor's right to obtain ownership of property in the event a debtor defaults on a debt. If federal or state law provides us with a statutory lien, then we are authorized to apply, without prior notice, your shares and dividends to any debt you owe us, in accordance with the statutory lien. We will not be liable for the dishonor of any check or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment.

National Credit Union Share Insurance Fund

As of July 22, 2010, your savings and certificates are insured to at least $250,000 by the National Credit Union Share Insurance Fund and backed by the full faith and credit of the United States Government.


Category: Insurance

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