Accounts & Services
1. Definitions
Annual Percentage Yield (APY)
The Annual Percentage Yield is a percentage rate reflecting the total amount of dividends paid on an account, based on the dividend rate and the frequency of compounding for a 365 day period.
Dividend Rate
The dividend rate is the declared or prospective annual dividend rate paid on an account, which does not reflect compounding.
2. Rate information
Regular Share, Abby's Adventure Share, Young Texans Share, Millennium Club, Optimum Club, Premium Club Share Draft, Holiday Club, IRA Share, Roth IRA Share, and Money Market Accounts.
The dividend rate and APY may change each dividend period as determined by the Credit Union's Board of Directors. The dividend rates and APYs disclosed in the Rate Disclosure reflect the dividend rates and APYs that the Credit Union anticipates paying for the current dividend period.
Term Share Certificates, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts.
The dividend rate and APY are fixed and remain until the first maturity date on the certificate. The rates and yields disclosed in the Rate Schedule reflect the dividend rates and APYs that were offered within the most recent seven calendar days and are accurate as of the date set forth above.
3. Account Information
Accounts are non-transferable and non-negotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations owed by Texas Federal Credit Union.
4. Compounding and Crediting.
For all non-certificate accounts except Holiday Club accounts, dividends will not be compounded and will be credited monthly. For these accounts, the dividend period is the calendar month. The dividend period begins on the first calendar day of the period and ends on the last calendar day of the period. For Holiday Club accounts, dividends will not be compounded and will be credited annually on your daily balance through October 31. The dividend period begins on the first calendar day of deposit and ends on the last calendar day. For 90 Day, 6 Month, and 12 Month Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate accounts dividends will not be compounded and will be credited at maturity. For these accounts, the dividend period is the term of the certificate. For all other Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate accounts except 36 Month Term Share Certificate accounts, dividends will be compounded and credited quarterly. For these accounts, the dividend period is the calendar quarter. The dividend period begins on the first calendar day of the period and ends on the last calendar day of the period. For 18 Month, 24 Month, and 30 Month Term Share Certificate accounts, you may choose to have dividends credited to your Regular Share account in lieu of crediting to your Term Share Certificate account. For 36 Month Term Share Certificate accounts, dividends will not be compounded and will be credited to your Regular Share account quarterly. For these accounts, the dividend period is the calendar quarter. The dividend period begins on the first calendar day of the period and ends on the last calendar day of the period.
5. Effect of Closing
For all accounts except certificate accounts, you will not receive accrued dividends if you close your account before dividends are paid.
6. Balance Computation Method
Dividends are calculated by the daily balance method which applies to a periodic rate to the balance in the account each day.
7. Fees and Charges
The fees and charges that may be assessed against your accounts are disclosed in the Truth-in-Savings Fee Schedule. You authorize us to charge any account of yours for any such fees or charges assessed without notice to you.
8. Accrual of Dividends
Dividends will begin to accrue on the first business day after the banking day you place non-cash items such as checks in your account.
9. Transaction Limitations
For all accounts except Share Draft accounts, the Credit Union reserves the right to require a member intending to make a cash withdrawal to give written notice of such intent not less than seven days and up to 60 days before such withdrawal. A membership share may not be withdrawn unless a Credit Union membership is terminated.
Regular Share, Abby's Adventures Share and Young Texans Share Accounts.
An Excessive Withdrawal Fee as disclosed in the Truth-in-Savings Fee Schedule will be charged for each withdrawal in excess of one per month.
Money Market Account
You may clear a maximum of three checks per month on your account. Any checks presented in excess of three per month will incur a $10.00 per check charge.
Holiday Club, IRA Share, Roth IRA Share, Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts.
You may not make any withdrawals or transfers to another Credit Union account of yours or to a third party by means of a preauthorized or automatic transfer, telephonic order, or instruction, or similar order to a third party.
IRA Share, Roth IRA Share, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts.
Contributions and withdrawals are subject to Internal Revenue Service Rules.
Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts.
After your account is opened, you may not make additions to the account until the maturity date. At our discretion, you may make withdrawals of principle from your account before maturity. Principal withdrawn before maturity is subject to early withdrawal penalties as set forth below.
10. Holiday Club, Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts - Additional Disclosures
Maturity Date
Holiday Club accounts will mature on October 31st of the term year. Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate accounts will mature on the maturity date set forth on the Account Receipt or other similar document.
Early Withdrawal Penalties.
Holiday Club Account. Any member-initiated withdrawal will result in forfeiture of accrued dividends. If you initiate a withdrawal within seven days after the account is opened, a penalty of seven days' dividends will be assessed. To the extent that dividends in the account at the time of the withdrawal are insufficient to pay the entire penalty assessed, the penalty will be assessed against principal. In some cases we may permit an early withdrawal without penalty, such as due to the death or incompetence of the account owner.
Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts.
We may impose a penalty if you withdraw any of the funds in your account before maturity. If your account has an original maturity date of 90 days, the penalty will equal 90 days' dividends on the principal amount of the certificate. If your account has an original maturity of 6, 12, or 36 months, the penalty will equal 90 days' dividends on the amount withdrawn subject to penalty. If your account has an original maturity of 18, 24, or 30 months, the penalty will equal 180 days' dividends on the amount withdrawn subject to penalty. Early withdrawal penalties apply whether or not dividends have been earned or if dividends have already been paid. To the extent that dividends in an account are insufficient to pay the entire penalty assessed, the penalty will be assessed against principal. In some cases, such as death or incompetence of the account owner, we may permit an early withdrawal without penalty.
Withdrawal of Dividends Prior to Maturity
The APY disclosed for each account in the Truth-in-Savings Rate Schedule is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.
Renewal Policy
Holiday Club Account. Your account will not automatically renew at maturity. If you do not renew the account, your account will not earn dividends after the maturity date.
Term Share Certificate, IRA Term Share Certificate, and Roth IRA Term Share Certificate Accounts. Your account will automatically renew at maturity. You will have a grace period of 10 calendar days after the maturity date to withdraw the funds or make additional deposits in your account without being charged a penalty.11. Holiday Club Account - Additional Information
Account balances will be disbursed annually to participating members no later than November 10. Holiday Club accounts are limited to one account per member per year.
12. Millennium Club Share Account - Additional Information
The Millennium Club Share Draft account is a checking account with added benefits. To qualify for this account, you must be at least 55 years of age. Membership in the Millennium Club entitles you to your first order of checks free and no fee for the following services: VISA® Check Card, E-Pay Service, Cashiers Checks, Travelers Checks, Wire Transfers, Copy Service, and Notary Service.
13. Nature of Dividends
Dividends are paid from current income and available earnings, after required transfers to reserve at the end of a dividend period.
14. Par Value of Shares
The par value of a one share in Texas Federal Credit Union is $25. You must complete payment of one share in your Regular Share account as a condition of admission to membership.
15. Bylaw Requirements
If the balance in you Regular Share account falls below the par value of one share and you do not increase the balance to at least the par value of one share within 30 days of the reduction, you may be terminated from membership.
16. National Credit Union Share Insurance Fund
Member accounts in the Texas Federal Credit Union are federally insured by the National Credit Union Share Insurance Fund
