Power Co-op Employees Credit Union
Skip to Content

Truth in Savings

DISCLOSURE OF ACCOUNT TERMS

Membership Share (Savings) Account
Second Share Account 
Escrow Account Rate Information:

See Savings page.
The dividend rate is at the discretion of the board of directors and may change at any time. The dividend rate will be set at the end of the quarter for the full quarter.

Compounding and Crediting:

Dividends will be compounded quarterly and will be credited quarterly. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. Dividends are paid on the last day of the quarter. If you close your account before dividends are credited, you will not receive accrued dividends.

Minimum Balance Requirements:

The minimum balance required to open a share account is the purchase of one $5.00 share in the Credit Union. An average daily balance of $5.00 must be maintained to earn a dividend.

Balance Computation Method:

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 determined by adding the full amount of principal in the account each day of the period and dividing the figure by the number of days in the period. 

Transaction Limitations:

During any one month, you may not make any more than six withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic order or instruction.  Transfers in excess of this limit will incur a charge.

Accrual of Dividends:

Dividends will begin to accrue on cash items on the business day you make your deposit and no later than the business day that we receive credit for non-cash items (such as checks).

Fees and Charges:

Fees and charges may be assessed against your account. See fees page.

Nature of Dividends:

Dividends are paid from current income and available earnings, after required transfers to reserves at the end of the dividend period.

Par Value of Shares; Dividend Period:

The par value of a regular share in the Credit Union is $5.00. The dividend period of the Credit Union is quarterly.

Statements

Statements are sent quarterly to all members.

National Credit Union Share Insurance Fund:

Member accounts in this Credit Union are federally insured by the National Credit Union Administration Share Insurance Fund.

SHARE DRAFT ACCOUNT

Rate Information:

See the Checking/Savings page:
The dividend rate is at the discretion of the board of directors and may change at any time. 

Compounding and Crediting:

Dividends will be compounded quarterly and credited quarterly. If you close your account before dividends are credited, you will not receive accrued dividends.

Minimum Balance Requirement:

A $1000.00 average daily balance is required to earn a dividend.

Balance Computation Method:

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 determined by adding the full amount of principal in the account each day of the period and dividing the figure by the number of days in the period. 

Accrual of Dividends:

Dividends will begin to accrue on cash items on the business day you make your deposit and no later than the business day that non-cash items (such as checks) are collected from the bank on which they are drawn.

Fees and Charges:

See Fees page. 

Nature of Dividends:

Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.

Statements

Monthly statements will be sent for share draft accounts. 

National Credit Union Share Insurance Fund:

Member accounts in this Credit Union are federally insured by the National Credit Union Administration Share Insurance Fund.

CD DISCLOSURE

Except as specifically described, the following
disclosures apply to all of the accounts. All accounts
described in this Truth-in-Savings Disclosure are
share accounts.
1. RATE INFORMATION — The annual percentage
yield is a percentage rate that reflects the total amount of
dividends to be paid on an account based on the dividend
rate and frequency of compounding for an annual period.
For Certificate accounts, the dividend rate and annual
percentage yield are fixed and will be in effect for the
initial term of the account. For accounts subject to
dividend compounding, the annual percentage yield is
based on an assumption that dividends will remain on
deposit until maturity. A withdrawal of dividends will
reduce earnings. For Certificate accounts, dividends must
be transferred to another account; dividends cannot be
added to the account.
2. DIVIDEND PERIOD — For each account, the
dividend period is the account’s term. The dividend period
begins on the first day of the term and ends on the
maturity date.
3. DIVIDEND COMPOUNDING AND CREDITING —
The compounding and crediting frequency of dividends
are stated in the Rate Schedule.
4. BALANCE INFORMATION — To open any account,
you must deposit or already have on deposit the
minimum required share(s) in a Share Savings account.
Some accounts may have additional minimum opening
deposit requirements. The minimum balance
requirements applicable to each account are set forth in
the Rate Schedule. For accounts using the daily balance
method as stated in the Rate Schedule dividends are
calculated by applying a daily periodic rate to the principal
in the account each day.
5. ACCRUAL OF DIVIDENDS — For Certificate
accounts, dividends will begin to accrue on noncash
deposits (e.g. checks) on the business day you make the
deposit to your account.
6. TRANSACTION LIMITATIONS — For all accounts,
your ability to make deposits to your account and any
limitations on such transactions are stated in the Rate
Schedule. After your account is opened, you may make
withdrawals subject to the early withdrawal penalties
stated below and your account will be closed. Partial
withdrawals are not allowed.
7. MATURITY — Your account will mature as stated on
this Truth-in-Savings Disclosure or on your Account
Receipt or Renewal Notice.
8. EARLY WITHDRAWAL PENALTY — We may
impose a penalty if you withdraw funds from your account
before the maturity date.
a. Amount of Penalty. For Certificate accounts, the
amount of the early withdrawal penalty for your account is
90 days’ dividends.
b. 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 or not
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.
c. 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:
(i) When an account owner dies or is determined legally
incompetent by a court or other body of competent
jurisdiction.
(ii) Where the account is an Individual Retirement
Account (IRA) and any portion is paid within seven
(7) days after the establishment of the account; or
where the account is a Keogh Plan (Keogh),
provided that the depositor forfeits an amount at
least equal to the simple dividends earned in the
amount withdrawn; or where the account is an IRA or
Keogh and the owner attains age 59½ or becomes
disabled.
9. RENEWAL POLICY — The renewal policy for your
accounts is stated in the Rate Schedule. For accounts
that do not automatically renew for another term, the
account balance will be transferred to another account of

yours upon maturity. You will not be paid dividends on the
account after the maturity date.
10. NONTRANSFERABLE/NONNEGOTIABLE — Your
account is nontransferable and nonnegotiable.
11. MEMBERSHIP — As a condition of membership,
you must purchase and maintain the minimum required
share(s) as set forth below.
Par Value of One Share $5.00
Number of Shares Required 1

© 2020 Power Co-op Employees Credit Union. All rights reserved.