Certificate Account Disclosure

CERTIFICATE ACCOUNT DISCLOSURE

SUBJECT TO CHANGE

Rate Information – The APY and dividend rate will be paid until maturity and assumes that monthly dividends are to be reinvested into this certificate account to compound. The dividend rate and annual percentage yield on this certificate have not yet been determined. Please call (877) 732-2848, send us a secure message via Internet Branch online banking or visit any of our branch locations on your maturity date or within the seven day grace period to acquire the dividend rate and the annual percentage yield that will be paid on your renewed certificate.

Compounding Frequency – Unless otherwise paid, dividends will be compounded every month.

Crediting Frequency – Dividends will be credited to your account each month. Alternatively, you may choose to have dividends paid to you by check (only if the dividend amount is $10 or greater) or by transfer to another SDCCU^® account. The APY is based on the assumption that dividends will remain in the account until maturity. A withdrawal of dividends will reduce compounding and earnings.

Dividend Period – The dividend period is monthly. The beginning date of each period is the first calendar day of the month and the ending date of each period is the last calendar day of each month (e.g. January 1^st to January 31^st).

Average Daily Balance Computation Method – Dividends are calculated by the average daily balance method, which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

Accrual of Dividends – Dividends will begin to accrue on the business day you deposit funds to your account. Any dividends which have accrued but have not been credited to your account at the time of a withdrawal of principal from the account will not be credited to the account by reason of such withdrawal.

Fees – Please refer to the Consumer Services Fee Schedule.

Transaction Limitations – After the account is opened, you may not make additional deposits into the account until the maturity date. You may withdraw paid dividends without penalty. After the maturity date and grace period, dividends will become principal of the renewed certificate. A withdrawal of principal will close the certificate account.

Early Withdrawal Penalties – A penalty will apply for principal withdrawals made prior to maturity. If the account has an original term of one year or less, the penalty equals 90 days’ dividends. If the account has an original term of greater than one year, the penalty equals 180 days’ dividends. Penalties for early withdrawal may be applied against principal thereby reducing the principal balance. Penalty-free withdrawals are only allowed for required minimum distribution (RMD) of IRA certificate funds held at SDCCU, for members who have reached the mandatory distribution age, or as required by law. Refer to your plan disclosure and consult with a tax professional if this certificate is part of an IRA or other qualified plan for information regarding other tax consequences and other penalties that may apply.

Automatic Renewal – Certificate accounts set up with the automatic renewal feature will, at maturity, automatically renew to a 3, 6, 12, 18, 24, 36, 48 or 60-month term and balance tier and at the rate in effect on the day of renewal (excluding promotional rates) unless you submit subsequent alternate instructions. A grace period of seven (7) calendar days past the maturity date is provided. If renewal is prevented, funds will earn dividends according to the terms of the receiving account or instrument.

ADDITIONAL/ALTERNATE TERMS APPLY TO THE FOLLOWING CERTIFICATE TYPE(S):

Promotional Bump Rate Certificate – You have the option to exchange the original dividend rate for a new dividend rate one time during the term. The new dividend rate will be the non-promotional certificate account rate in effect for a similar term and tier. The new dividend rate and corresponding APY will then be in effect from the day you exercise the bump rate option through the remainder of the term. We will only exercise the bump rate option upon your request. There is no fee to take advantage of the bump rate option. Exchanging the dividend rate will not alter the scheduled maturity date. You may exercise this bump rate option only once and only during the initial term. The certificate account will automatically renew at maturity to a similar term and balance tier and at the rate in effect on the day of renewal (excluding promotional rates) unless you submit subsequent alternate instructions.

Deferred Dividend Certificate – The Deferred Dividend Certificate pays dividends only at maturity; therefore, dividends are not compounded. For this account type, the dividend period is the same as the term and the term cannot exceed twelve (12) months.