Individual Retirement Account (I.R.A.) CD Term of Less Than One Year Account Disclosure

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This disclosure describes the terms and features of the IRA accounts offered by Salem Five Cents Savings Bank.  Please refer to our Consumer Banking Services Agreement and current Fee Schedule and your I.R.A. Plan Agreement for additional information of importance to you.

In this disclosure, the words, "you" and "your" refer to the consumer who maintains a 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.

Eligibility: Relationship I.R.A .CD: To obtain the APY for a Relationship I.R.A. CD, you must also open, and maintain during the entire term of the CD, a Star Checking or Gold Star Checking account.

Renewal Policy for All Term Deposit Accounts: Your account will automatically renew at maturity unless we are otherwise instructed by you or unless you are otherwise notified by us.

For CDs with terms greater than 31 days, notification will be sent to you in writing prior to the maturity date of your account. You will have a grace period of 10 calendar days after maturity to renew the certificate, withdraw the funds, or transfer the funds to another account without penalty. Interest will not be paid on the certificate 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, we will renew the account based on the renewal schedule noted below.  Please note that Relationship I.R.A. and Special I.R.A. term accounts DO NOT automatically renew into another Relationship I.R.A. and Special I.R.A. term account. They renew into a traditional I.R.A. term accounts. The interest rate will be the interest rate we offer on traditional I.R.A. term deposit accounts of similar terms and amounts on the maturity date.

Existing Term        |       Term Upon Renewal

91-181 Day CD                 91 day CD

182-364 day CD               182 day CD

Interest Rate Information: 

Compounding and Crediting: Interest will be compounded monthly and will be credited to your account monthly.  If you close your account before interest is credited, you will not receive the accrued interest.

Minimum Balance Requirements: Relationship I.R.A. & Special I.R.A.: You must deposit at least $2,000 to open the account. You must maintain a minimum balance of $2,000 in your account each day to obtain the disclosed annual percentage yield. Traditional I.R.A.: You must deposit at least $500 to open this account. You must maintain a minimum balance $500 in your 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 on the day we receive your deposit.

Transaction Limitations: After your account is opened, you may not make deposits into or withdrawals of principal from the account until the maturity day (except for withdrawals in the case of your death, disability or attainment of age 59 1/2).  Transactions are also limited by your I.R.A. Plan Agreement.

Early Withdrawal Penalty: When you open a Term Deposit Account, you agree to keep your funds on deposit until the maturity date.  You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal.  If you withdraw principal before the maturity date without our consent, a penalty equal to 2% of the principal balance withdrawn will be charged to your account.

If the amount of the penalty exceeds the amount of earned interest that has not already been paid to you, we may have to deduct some of the penalty from your principal.