Special Term Deposit (CD) Accounts of Less Than One Year

Account Disclosure Information

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This disclosure describes the terms and features of the Special 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 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: The maximum deposit amount allowed to open this account is $500,000.

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 CD accounts 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 account, withdraw the funds, or transfer the funds to another account without penalty.  Interest will not be paid on the account 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 “Special” CD accounts renew into "Regular" CD accounts at standard terms.  The interest rate will be the interest rate we offer on "Regular" CD accounts on the maturity date.

Existing Term (including "Special" CDs)        |       Standard Term Upon Renewal

3 - 5 month (91-181 day) CD                                          3-month (91 day) CD

6 - 11 month (182-364 day) CD                                      6-month (182 day) CD


Interest Rate Information:
The annual percentage yield assumes interest remains on deposit until maturity. A withdrawal of interest will reduce earnings.

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.


The interest rate for your 6 Month Special CD is 5.00% with an annual percentage yield of 5.00%. You will be paid this rate until the maturity date of the account.

The interest rate for your 9 Month Special CD is 5.00% with an annual percentage yield of 5.00%. You will be paid this rate until the maturity date of the account.


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

Minimum Balance Requirements: You must deposit at least $10,000 to open and maintain this account.  You must maintain a minimum balance of $10,000 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 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.

Transaction Limitations: After your account is opened, you may not make deposits into or withdrawals of principal from the account until the maturity date.  You may withdraw interest credited to your account at any time.

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, 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.