Rates and terms
June 27, 2014
|The above rates apply for the Local Green Certificate for 24, 36 and 60 months only.|
|Savers Club||Dividend rate||APY||Balance required for rate||Term|
|Club Account, Homebuyers Club Account||0.30||0.30||$100||12|
|Regular Share Savings||Dividend rate||APY||Balance required for rate|
|0.10||0.10||$20,000 and over|
|0.05||0.05||$10,000 to $19,999.99|
|0.05||0.05||$5 to $9,999.99|
|Checking/Share Draft||Dividend rate||APY||Balance required for rate|
|0.10||0.10||$20,000 and over|
|0.05||0.05||$10,000 to $19,999.99|
|0.01||0.01||$5 to $9,999.99|
|Student Credit Union Youth Savings||Dividend Rate||APY||Balance Required for Rate|
|0.15||0.15||$1 and over|
|Student Credit Union is a branch of the Alternatives Federal Credit Union run by and for students 18 years and under.|
|IRA Savings||Dividend rate||APY||Balance required for rate|
|0.25||0.25||$20,000 and over|
|0.10||0.10||$10,000 to $19,999.99|
|0.10||0.10||$5 to $9,999.99|
|Individual Retirement Account funds (IRAs)and Simplified Employee Pensions (SEPs) may be invested in IRA/SEP savings or any Share Certificate. We accept rollover IRAs from other institutions. IRA terms are described in Custodial Agreement.|
Non-Interest Bearing Accounts
If you would prefer not to earn interest on savings or share draft accounts, for reasons of bookkeeping, tax reporting, or in order that the declined interest be donated to Alternatives' non-profit affiliate, Alternatives Impact, please contact a Member Service Representative to make this change.
Community Development certificates
You can support our community development programs by choosing a lower interest rate. The difference between our regular stated rate and the rate you choose can be donated to the program of your choice: Individual Development Accounts, the Student Credit Union, Business CENTS, the Free Tax Preparation Program, MoneyWise, or general Credit Union activity.
The following terms apply to all accounts
Setting of dividend rate
Certificate Shares, Savers Club: The annual percentage yield is fixed at the time of opening. Your account will mature on the date disclosed when you open it. Rates are in effect from the date of opening until maturity.
Regular, Share Draft, Student Credit Union, IRA and SEP: The annual percentage rate is set each month by the Board of Directors at their sole discretion. Rates disclosed are in effect for the calendar month. Your APY may change each calendar month.
Minimum opening deposit and minimum balance
Certificate Shares: You must open your account with and maintain a minimum deposit of: For 3 and 6 month terms: $5,000 For 12 month terms: $2,500 For 24-60 month terms: $500.
Savers Club: You must open this account with a minimum deposit of $100.
Lucky Savers: You must open this account with a minimum deposit of $25.
Regular Shares: Every member must have a Share Savings account with a minimum balance of $5. Depositors must be members of the Credit Union and pay a $20 one-time membership fee.
Regular, IRA and SEP: Minimum opening and subsequent balance of $5.
Share Draft: There is no minimum balance. When you order share drafts printed, the payment for printing must be in your share draft account.
Student Credit Union: You must open and maintain a savings account with a minimum of $1. There is a $2 fee to join, which is waived if the student's parents are already members.
Method of calculation of dividends
Certificate Shares: We use the daily balance method to calculate the dividends in your account. This method applies a periodic rate to the principal in the account each day of the dividend period.
Savers Club: We use the daily balance method to calculate the dividends in your account. This method applies a periodic rate to the principal in the account each day of the dividend period.
Regular, Student Credit Union, Regular IRA, SEP, Share Draft: We use the average daily balance method to calculate the dividends in your account. 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 month and dividing that figure by the number of days in the month.
Dividend crediting and compunding
Certificate Shares: Dividends will be credited to your account monthly. You may not receive the accrued dividends if your account is closed prior to the dividend posting date. You may choose to have the periodic dividend payments transferred to your Share Savings Account each month.
Savers Club: Dividends will be paid to this account at maturity. Dividends do not compound.
Regular Shares, Share Draft, IRA and SEP: Dividends will be credited to and compound in your account on the last day of each calendar month. If you close your account before dividends are credited, you will not receive the accrued dividends. You must maintain a minimum average daily balance in your account to obtain the disclosed APY.
Withdrawals from accounts penalties
Certificate Shares: We will impose a penalty if you withdraw any of the principal from a certificate. The amount of the penalty varies based on the term of the account. Term: 3-18 months - penalty is 90 days earned interest. Term: 24-60 months - penalty is 180 days earned interest.
Savers Club: There are no partial withdrawals permitted. If you close your account before dividends are credited, your deposits will be paid, but you will not receive the accrued dividends. Your Club account will be assessed a fee of all earned interest if it is closed prior to maturity. Withdrawals for the purpose of closing on a home purchase are permitted without penalty.
Lucky Savers: First withdrawal: $25 fee, Second withdrawal: penalty of all earned dividends and account is closed.
Share Drafts and Student Credit Union: These accounts have no restrictions on the number and size of withdrawals.
Regular Shares: A member is limited to six pre-authorized or automatic withdrawals, telephone transfers, or transfers initiated by personal computer, per month.
IRA and SEP regular: IRA terms are described in the Custodial Agreement. There may be IRS withholding for early withdrawals.
Deposits to accounts
Certificate Shares: There are no deposits permitted once these accounts are opened.
Checking and Student Credit Union: These accounts have no restrictions on the number and size of withdrawals.
Regular Savings: A member is limited to six pre-authorized or automatic withdrawals, telephone transfers, or transfers initiated by personal computer, per month. Please view more information about this regulation.
IRA and SEP Regular, IRA and SEP Certificates: There are no restrictions on deposits on these accounts. IRA limitations on deposits are described in the Custodial Agreement.
Renewal at maturity
Certificates, Savers Club, IRA, and SEP: These accounts automatically renew at maturity. A notice will be sent to members 40 days before maturity. If you do not provide instructions for renewal of the account at maturity, your deposit will be rolled over into a new certificate of the same term length, at the current rate.