Early Withdrawal Penalty
We may impose a penalty if you withdraw any of the principal before the maturity date. However, after your certificate is opened, you may make withdrawals of dividends from you account.
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, provided that the depositor forfeits an amount at least equal to the simple dividend earned on the amount withdrawn or where the account is an IRA and the owner attains age 70 ½ or becomes disabled.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.