26-Month Preferred IRA CD Disclosure

Truth-In-Savings Disclosure 

Rate information – The interest rate on your account is 2.96%% with an annual percentage yield (APY) of 3.00% until the first maturity. The Bank may choose to exercise the option of increasing the interest rate during the term of the certificate.

Compounding frequency – Interest will be compounded annually (capitalized interest) or will not be compounded and transferred to another First State Bank account.

Crediting frequency – Interest will be credited to your account annually.

And will be paid (disposition) – Interest will be either capitalized or credited to another First State Bank account.  

Minimum balance to open account – You must deposit $500.00 to open this account.

Maximum balance – The total collective balance of all Preferred Certificates of Deposit cannot exceed $1,000,000.00 per depositor.

Daily balance computation method – We use the daily balance method to calculate the interest in your account.  This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on non-cash deposits – Interest begins to accrue no later than the business day  we receive credit for the deposit of non-cash items (for example, checks).

Transaction Limitations - You may not make any deposits to your account before maturity. You may not make partial withdrawals of principal from your account. If you are 59 1/2 or older you can only withdraw interest credited in the term before maturity of that term without penalty. You can withdraw interest any time during the term of crediting after it is credited to your account. 

Time requirements – Your account will mature 38 months from the date of opening.

Early withdrawal penalties – A penalty may be imposed for withdrawals before maturity as follows:

  • The account has a penalty equivalent of one year's interest.

In addition, and depending on whether the early withdrawal is considered a premature distribution, a 10% IRS premature distribution penalty may be imposed.

Withdrawal of interest prior to maturity – The annual percentage yield (APY) assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. 

Automatically renewable time account – This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds at maturity (or within the grace period mentioned below) or we receive written notice from you within the grace period mentioned below. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will not accrue after final maturity. 

Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new time deposits on the maturity date which have the same term, minimum balance (if any) and other features as the original time deposit. 

You will have ten (10) calendar days after maturity to withdraw the funds without penalty. However, funds withdrawn during this time period will not earn interest from the most recent maturity date to the date of the withdrawal.

    Rev. 10/2022