When you invest in credit union Share Certificates, you get more than a guaranteed high yield. Unlike other financial institutions, credit union earnings are returned to our members in the form of lower interest loans, convenient free services and new products. It makes sense to invest at your Credit Union.
Share Certificates require a $500.00 minimum balance. You must maintain a minimum average daily balance of $500.00 to obtain the disclosed annual percentage yield for your share certificate. Lehigh Valley Educators Credit Union offers 3, 6, 12, 24, 36 and 60 month Share Certificates and IRA Share Certificates.
Important Share Certificate Information
Unless otherwise paid, dividends will be compounded every month
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 of the period which is equivalent to a month and dividing that figure by the number of days in the period. Dividends are posted to your Share Certificate monthly. Alternatively, you may choose to have dividends paid to you or to another account at the credit union every month rather than credited to your share certificate
Early Withdrawal Penalties (a penalty may be imposed for withdrawals before maturity)
If your account has an original maturity of 3 months: The penalty we may impose will equal the dividends earned since the date of issuance or 45 days, whichever is less, but at least seven days dividends
If your account has an original maturity of 6 months to 1 year: The penalty we may impose will equal the dividends earned since the date of issuance or 90 days, whichever is less, but at least seven days dividends
If your account has an original maturity of more than one year: The penalty we may impose will equal the dividends earned since the date of issuance or 180 days, whichever is less, but at least seven days dividends
Withdrawal of Dividends Prior to Maturity
The annual percentage yield is based on the assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings
Automatically Renewable Account
This account will automatically renew at maturity. You may prevent renewal if you redeem the certificate by withdrawing the funds or providing written notice on the date of maturity (or within the grace period mentioned below, if any). We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, your deposit will be placed in a dividend-bearing account, or a check can be issued
Each renewal term will be the same as the original term, beginning on the maturity date. The dividend rate will be the same we offer on new term share accounts on the maturity date which have the same term, minimum balance (if any) and other features as the original term share account
You will have a grace period of ten calendar days after the maturity to withdraw the funds without being charged an early withdrawal penalty
APY = Annual Percentage Yield. APY for one year or less time deposit is based on the assumption that the funds will remain on deposit for a full year at the stated rate. A withdrawal will reduce earnings.
IRA, Roth Contributory IRA and Roth Conversion IRA
MINIMUM BALANCE REQUIREMENTS:
No minimum balance requirement applies to these share accounts.
For this account type, the dividend period is monthly. 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 January 31. All other dividend periods follow this same pattern of dates.
The dividend declaration date follows the ending date of a dividend period, and for the example above is February 1. If you close your share account before dividends are paid, you will not receive the accrued dividends.
The dividend rate and annual percentage yield may change every dividend period. We may change the dividend rate for your account as determined by the credit union board of directors.
COMPOUNDING AND CREDITING:
Dividends will be credited to your account every month.
AVERAGE DAILY 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 calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is the monthly cycle.
You may not make any withdrawals or transfers to another credit union account of yours or a third party by means of a preauthorized or automatic transfer, telephonic order or instruction, or similar order to a third party.
APY = Annual Percentage Yield. A withdrawal will reduce earnings.
Money Market Accounts
Money Market Shares allow you to earn higher dividends without losing accessibility to your funds. These funds are federally insured by the National Credit Union Administration (NCUA) up to a total of $250,000 for all shares. This is the maximum amount allowed by law.
Minimum balance to open: $0
Minimum balance to earn APY: $2,500
Rate: Declared weekly
Dividends*: Day of deposit to the day of withdrawal. Dividends are calculated on actual daily balances. If the daily balance falls below $2,500, no dividends are earned until the daily balance reaches $2,500. Dividends are compounded daily and paid monthly into Money Market Shares. Once the particular range is met, the dividend rate and annual percentage yield for that balance range will apply to the full balance of your account
Closure: Instruction in writing
Transaction Limits: You may not make any withdrawals or transfers to a third party by means of preauthorized, automatic, or internet transfer, telephonic order or instruction or similar order to a third party. During any statement period, you may not make more than six withdrawals or transfers to another credit union account of yours by means of an internet transfer or telephonic order or instruction. No more than three of the six transfers may be made by check, draft, debit card (if applicable), or similar order to a third party. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the credit union. You may not pledge funds in this share account for any purpose
Overdraft: Is available a maximum of three times per month
Additional deposits: Can be made at anytime
APY = Annual Percentage Yield. A withdrawal will reduce earnings.