Certificates of Deposit (CDs)
MINIMUM BALANCE REQUIRED
A minimum deposit is $1,000.00 is required to open any Certificate of Deposit. These accounts are fixed rate and fixed term interest bearing deposits.
Interest rates and annual percentage yields (A.P.Y.) are determined on a periodic basis. A separate rate sheet is available for the current rates.
COMPOUNDING AND CREDITING FREQUENCY
Interest rates are fixed until the maturity date of the certificate. Interest is compounded daily and credited annually, semiannually, quarterly or monthly based on the actual term of the certificate you may choose.
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.
A Certificate of Deposit is a contract to keep these funds upon deposit until the due date and for the full maturity or any subsequent renewals. Under government regulations your deposit may not be withdrawn prior to maturity, except with our consent, which may be given at the time such request is made. A substantial penalty is required if we grant your request for early withdrawal. The following is Bank of Chestnut Policy on early withdrawals from a certificate of deposit:
CDs can be either single maturity or automatically renewable certificates. If a C. D. is a single maturity certificate, present it promptly at maturity, as no interest is payable after the maturity date. If a certificate is automatically renewable, you will have a grace period of 10 days from maturity date to present this certificate for payment without penalty. If the certificate automatically renews, it will be renewed at the current rate in effect at the date of maturity.