*Early withdrawals may result in penalties. For Certificates and IRA Certificates, the amount of early withdrawal penalty on your account is 15 days dividends on the amount withdrawn for each month of the original term of the certificate. For example:

• A six-month certificate will have a 90-day penalty (6x15days) 
• A 12-month certificate will have a 180-day penalty (12x15days) 
• A 5-year certificate will have a 900-day penalty (60x15days)

How the Penalty Works

The penalty is calculated as a forfeiture of the part of the dividend that has 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:

• Classic Service Plan (CSP) members are allowed a one-time withdrawal up to 50% of the Certificate amount.
• When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
• Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment, provided that the depositor forfeits an amount at least equal to the simple dividend earned on the amount withdrawn or where the account is an IRA and the owner attains age 70 ½ or becomes disabled.

Nontransferable / Nonnegotiable

Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure an obligation of an owner, except obligations with ABNB Federal Credit Union.