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How is the penalty calculated for closing out a certificate early?

If share certificate funds other than dividends are withdrawn prior to maturity, A SUBSTANTIAL PENALTY IS IMPOSED as follows: The penalty is a forfeiture of dividends earned. The amount upon which dividends are forfeited is the principal amount withdrawn unless the amount withdrawn reduces the balance below the minimum balance required for the share certificate. In the event, the amount upon which dividends are forfeited is the entire principal amount of the share certificate, the penalty is as follows:

  • If the term of your share certificate is one year or less, you will forfeit an amount equal to 90 DAYS OF DIVIDENDS, WHETHER OR NOT THEY HAVE BEEN EARNED. THIS COULD CAUSE YOUR PRINCIPAL INVESTMENT TO BE REDUCED TO LESS THAN THE ORIGINAL AMOUNT DEPOSITED
  • If the term of your share certificate is greater than one year , you will forfeit an amount equal to 180 DAYS OF DIVIDENDS, WHETHER OR NOT THEY HAVE BEEN EARNED. THIS COULD CAUSE YOUR PRINCIPAL INVESTMENT TO BE REDUCED TO LESS THAN THE ORIGINAL AMOUNT DEPOSITED.
  • We reserve the right to charge early withdrawal penalties except for required minimum distributions for IRAs.