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. 

RATE INFORMATION

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. 

WITHDRAWAL LIMITATIONS

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 Under government regulations your deposit may not be withdrawn prior to maturity, except with our consent, which may be given at the time such request is made.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:  

  • Where a time deposit with an original maturity of 7 days to 3 months, or any portion thereof, is paid before maturity, a depositor shall forfeit an amount equal to the greater of (a) all interest earned on the amount of withdrawn from the most recent of the date of deposit, date of maturity, or date on which notice was given, or (b) all interest that could have been earned on the amount withdrawn during a period equal to one half the maturity period or the required notice period.
  • Where a time deposit with an original maturity of longer than 3 months to one year, or any portion thereof, is paid before maturity, a depositor shall forfeit an amount at least equal to 91 days interest earned, or that could have been earned, on the amount withdrawn at the simple interest rate being paid on the deposit, regardless of the length of time the funds withdrawn have remained on deposit.
  • Where a time deposit with an original maturity of more than a year, or any portion thereof, is paid before maturity, the depositor shall forfeit amount equal to at least 182 days interest earned, or that could have been earned, on the amount withdrawn at the simple interest rate being paid on the deposit, regardless of the length of time the funds withdrawn have remained on deposit. Any of the above penalties may result in a reduction of the principal sum of the account.
  • We will honor a request for early withdrawal and we will not assess any penalty if any owner of the deposit dies or is judicially declared to be mentally incompetent.

RENEWAL POLICY

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.