Account and Service Fees

Disclosures

Truth-In-Savings
Except as specifically described, the following disclosures apply to all Kitsap Credit Union accounts:

1. Rate Information. The Dividend rate and Annual Percentage Yield (APY) on your accounts are stated on the applicable product rates tab. For Share, IRA Savings, Holiday, Varsity Savings, Kids Club, and Gold Checking, the dividend rate and APY may change monthly as determined by the Credit Union's Asset Liability Committee (ALCO). For Money Market accounts, the dividend rate and APY may change weekly as determined by ALCO. Money Market accounts and Gold Checking accounts are tiered rate accounts for which you will receive the dividend rate and APY for each balance tier once the tiered balance amount has been met. Fees may reduce earnings. For Share Certificate and IRA Certificate accounts, the dividend rate and APY are fixed and will be in effect for the term of the account. For Bump Rate Certificates, you may elect to adjust the dividend rate to the rate currently offered for the same term Bump Rate Certificate once during the original term of the Certificate. For all Share Certificate and IRA Certificate accounts, the APY assumes that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings. No interest or dividends will be paid to any zero-dividend account, regardless of any terms or conditions provided by KCU.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. For variable rate accounts, the dividend rate and APY stated on the applicable product rates tab are the rates that the Credit Union anticipates paying for the applicable dividend period.
3. Compounding and Crediting. Dividends will be compounded daily and credited monthly. The dividend period for Share, IRA Savings, Holiday, Varsity Savings, Kids Club, Gold Checking, and Money Market accounts begins on the first calendar day of the month and ends on the last calendar day of the month. The dividend period for all Share and IRA Certificates begins on the day the account is open and ends on the maturity date of the account. For all accounts, if you close your account prior to the end of the dividend period, dividends will not be paid.
4. Accrual of Dividends. Dividends will begin to accrue on non-cash deposits (e.g. checks) on the business day you make the deposit to your account.
5. Balance Information. The minimum balance required to open each account is stated on page one. 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 calculated by adding the balance in the account for each day in the period and dividing that figure by the number of days in the period. The minimum average daily balance requirements to obtain the stated APY is listed on page one. If the average daily balance falls below the minimum requirement, dividends will not be paid. Money Market accounts that do not maintain the minimum average daily balance will be charged a monthly service fee. For Gold Checking accounts you must conduct the following each month during the qualification period in order to receive the dividend rate and benefits for Gold Checking. The qualification period is from the 1st day of the month until the last day of the month. Qualifications: (1) Have 12 or more in-person or online point of sale (POS) transactions or debit card purchases post and clear by close of business on the last day of the month (bill payments using debit card are excluded); (2) Sign up to receive account statements electronically (e-statements) by the last day of the month; and (3) Receive a direct deposit, conduct an outgoing ACH transaction, or perform an online bill payment transaction to post and clear by close of business on the last day of the month. For each qualification period the Gold Checking qualifications are met, the tiered dividend rate will be paid on applicable balances and nationwide ATM fees will be refunded up to $25 a month. Transactions must post and reflect on the monthly statement for the qualification period to be counted as a qualifier towards that months Gold Checking benefits. If the account does not meet the periodic qualifications, the account will earn base rate shown on the applicable product rates tab and the account will not receive ATM refunds for that time period. Gold Checking is available to personal accounts only and limited to one per Taxpayer Identification Number (Social Security Number, Individual Taxpayer Identification Number).
6. Share and IRA Certificate Account Features
   1. Account Limitations After your account is opened, you may not make withdrawals or additional deposits to your account, unless otherwise indicated on the applicable product rates tab.
   2. Maturity. Your Share and IRA Certificate account will mature within the terms or on the maturity date on your Share and IRA Certificate Receipt or Maturity Notice.
   3. Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal of your Share Certificate/IRA Certificate account before the maturity date.
      1. Amount of Penalty For Share and IRA Certificate accounts, the amount of the early withdrawal penalty is 90 days dividends for certificates with maturity dates of 1 year or less, 180 days dividends for certificates with maturity dates over 1 year.
      2. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividends have already been paid, the penalty will be deducted from the principal. For total withdrawal of funds, the penalty will be calculated on the principal balance in the account at the time of early withdrawal. For partial withdrawals, the penalty will be calculated on the amount withdrawn.
      3. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:
         1. When an account owner dies or is determined legally incompetent by a court of law or other body of competent jurisdiction.
         2. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; provided that the depositor forfeits an amount at least equal to the dividend rate earned on the amount withdrawn; or where the account is an IRA and the owner attains age 70½ or becomes disabled.
   4. Renewal Policy. Share Certificate and IRA Certificate accounts are automatically renewable accounts and will automatically renew for another term upon maturity unless you request otherwise. For a renewal account you have a grace period of seven (7) business days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. If this account will not automatically renew, dividends will not be paid after maturity, and the entire balance will be transferred in accordance with your payment instruction.
7. Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union. The rates and fees appearing in this Schedule are accurate and effective as of the Effective Date indicated on the applicable product rates tab. Fees could reduce earnings. If you have any questions or require current rate information on your accounts, please call the Credit Union.