9 Month No Penalty CD Account Disclosure

Are you opening an account online? After reviewing this document, please close the window and you will be returned to your application to complete it.

This disclosure describes the terms and features of the Term Deposit Account you have selected.  Please refer to our Consumer Banking Services Agreement and our current Fee Schedule for additional information of importance to you.

In this disclosure, the words "you" and "your" refer to the consumer who maintains the deposit account with the Bank. The words "we" and "us" refer to Salem Five Cents Savings Bank.

If you have any questions about information provided here, please allow a bank representative to answer them for you.

Interest Rate Information:

Rates stated are accurate as of today. Fees may reduce earnings on accounts.

The Interest rate on your 9 Month No Penalty CD is 0.05% with an Annual Percentage Yield of 0.05%

The maturity date is the last day of your CD's term based on the date your account is opened. If your account matures on a Sunday or a Bank holiday, funds will be available on the next business day.

Compounding and Crediting: Interest on your account is not compounded (simple interest), and will be credited to your account on a monthly basis.

Minimum Balance Requirements: You must deposit at least $10,000 to open and maintain this account, of which $5,000 must be new money to the bank.

You must maintain a minimum balance of $10,000 in the account each day to obtain the disclosed annual percentage yield.

Balance Computation Method: We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

We calculate interest from the day of your deposit until, but not including, the day of your withdrawal.

Accrual of Interest on Deposits: Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). If your new account is not funded within 10 business days from the date your account application is approved, we may close your account.

Renewal Policy: Notification will be sent to you in writing prior to the maturity date of your CD. You will have a grace period of 10 calendar days after maturity to renew the CD, withdraw the funds, or transfer the funds to another account without penalty. Interest will not be paid on the CD during the grace period unless it is renewed as of the maturity date.

If you do not instruct us in writing as to how to handle your account on or prior to the maturity date, your account will automatically renew at maturity into our standard 6 Month CD. The standard CD will be subject to an early withdrawal penalty. The interest rate will be the interest rate we offer on a 6 Month CD of similar amount on the maturity date.

Transaction Limitations: You may close your account without penalty at any time after the first six days. You may not make deposits into the account during the term and no partial withdrawals.

Early Withdrawal Penalty: If you close your account during the first six days of the term, a penalty of 2% of the principal balance withdrawn will be charged to your account. If the amount of the penalty exceeds the amount of the earned interest that had not already been paid to you, we may have to deduct some of the penalty from your principal. 

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