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 all accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.

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

Dividend Compounding and Crediting
The compounding and crediting of dividends applicable to each account is set forth in the Rate Schedule. The dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period.

Balance Information
The minimum balance requirements applicable to each account are set forth in the Rate Schedule. For all accounts, dividends are calculated by the Daily Balance method which applies a daily periodic rate to the principal in the account each day.

Accrual of Dividends
For all accounts, dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account. For all accounts, if you close your account before accrued dividends are credited, accrued dividends will not be paid.

Transaction Limitations
After your account is opened you may not make additions to the account or withdrawals of principal from the account until the maturity date stated. You may only withdraw dividends that have been credited. At maturity the dividends will automatically be added to the principal or you may request that they be paid to a regular share account.

Maturity
Your account will mature as indicated on this Rate and Fee Schedule or on your Account Receipt or Renewal Notice.


Early Withdrawal Penalty
We may impose a penalty if you withdraw any of the principal before the maturity date.

Amount of Penalty
For Share and IRA Share Certificate terms of 3 to 6 months, the amount of early withdrawal penalty is 30 days dividends. For Share and IRA Share Certificate terms of 7 to 48 months, the amount of early withdrawal penalty is 90 days dividends.

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 dividend has already been paid, the penalty will be deducted from the principal.

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:

1. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
   
   
2. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is a Keogh Plan (Keogh) provided that the depositor forfeits an amount of at least equal to the simple dividends earned in the account withdrawn; or where the account is an IRA or Keogh and the owner attains age 59 1/2 or becomes disabled.