New Account Disclosures

B-1—Model Clauses for Account Disclosures

(a) Rate information

(i) Fixed-rate accounts

The interest rate on your account is __% with an annual percentage yield of __%. You will be paid this rate [for (time period)/until (date)/ for at least 30 calendar days].

(ii) Variable-rate accounts

The interest rate on your account is __% with an annual percentage yield of __%.

Your interest rate and annual percentage yield may change.

Determination of Rate

The interest rate on your account is based on (name of index) [plus/minus a margin of ____].

        or

At our discretion, we may change the interest rate on your account.

Frequency of Rate Changes

We may change the interest rate on your account [every (time period)/at any time].

Limitations on Rate Changes

The interest rate for your account will never change by more than __% each (time period).

The interest rate will never be [less/more] than __%.

        or

The interest rate will never [exceed__% above/drop more than __% below] the interest rate initially disclosed to you.

(iii) Stepped-rate accounts

The initial interest rate for your account is __%. You will be paid this rate [for (time period)/until (date)]. After that time, the interest rate for your account will be __%, and you will be paid this rate [for (time period)/until (date)]. The annual percentage yield for your account is __%.

(iv) Tiered-rate accounts

Tiering Method A

• If your [daily balance/average daily balance] is $__ or more, the interest rate paid on the entire balance in your account will be __% with an annual percentage yield of __%.

• If your [daily balance/average daily balance] is more than $__, but less than $__, the interest rate paid on the entire balance in your account will be __% with an annual percentage yield of __%.

• If your [daily balance/average daily balance] is $__ or less, the interest rate paid on the entire balance will be __% with an annual percentage yield of __%.

Tiering Method B

• An interest rate of __% will be paid only for that portion of your [daily balance/average daily balance] that is greater than $__. The annual percentage yield for this tier will range from __% to __%, depending on the balance in the account.

• An interest rate of __% will be paid only for that portion of your [daily balance/average daily balance] that is greater than $__, but less than $__. The annual percentage yield for this tier will range from __% to __%, depending on the balance in the account.

• If your [daily balance/average daily balance] is $__ or less, the interest rate paid on the entire balance will be __% with an annual percentage yield of __%.

(b) Compounding and crediting

(i) Frequency

Interest will be compounded [on a __ basis/every (time period)]. Interest will be credited to your account [on a __ basis/every (time period)].

(ii) Effect of closing an account

If you close your account before interest is credited, you will not receive the accrued interest.

(c) Minimum balance requirements

(i) To open the account

You must deposit $___ to open this account.

(ii) To avoid imposition of fees

A minimum balance fee of $___ will be imposed every (time period) if the balance in the account falls below $___ any day of the (time period).

A minimum balance fee of $___ will be imposed every (time period) if the average daily balance for the (time period) falls below $___. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

(iii) To obtain the annual percentage yield disclosed

You must maintain a minimum balance of $___ in the account each day to obtain the disclosed annual percentage yield.

You must maintain a minimum average daily balance of $___ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

(d) Balance computation method

(i) Daily balance 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.

(ii) Average daily balance method

We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

(e) Accrual of interest on noncash deposits

Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

        or

Interest begins to accrue on the business day you deposit noncash items (for example, checks).

(f) Fees

The following fees may be assessed against your account:

_______________$____

_______________$____

_______________$____

____( conditions for imposing fee ) $____

_________________% of ____.

(g) Transaction limitations

The minimum amount you may [withdraw/write a check for] is $___.

You may make ____ [deposits into/withdrawals from] your account each (time period).

You may not make [deposits into/withdrawals from] your account until the maturity date.

(h) Disclosures relating to time accounts

(i) Time requirements

Your account will mature on (date).

Your account will mature in (time period).

(ii) Early withdrawal penalties

We [will/may] impose a penalty if you withdraw [any/all] of the [deposited funds/principal] before the maturity date. The fee imposed will equal ___ days/week[s]/month[s] of interest.

      or

We [will/may] impose a penalty of $___ if you withdraw [any/all] of the [deposited funds/principal] before the maturity date.

If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be ___% with an annual percentage yield of ___%.

(iii) Withdrawal of interest prior to maturity

The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.

(iv) Renewal policies

(1) Automatically renewable time accounts

This account will automatically renew at maturity.

You will have [___ calendar/business] days after the maturity date to withdraw funds without penalty.

      or

There is no grace period following the maturity of this account to withdraw funds without penalty.

(2) Non-automatically renewable time accounts

This account will not renew automatically at maturity. If you do not renew the account, your deposit will be placed in [an interest-bearing/a noninterest-bearing] account.

(v) Required interest distribution.

This account requires the distribution of interest and does not allow interest to remain in the account.

(i) Bonuses

You will [be paid/receive] [$___ /(description of item)] as a bonus [when you open the account/on (date) ___].

You must maintain a minimum [daily balance/average daily balance] of $___ to obtain the bonus.

To earn the bonus, [$___ /your entire principal] must remain on deposit [for (time period)/until (date)___].

B-2—Model Clauses for Change in Terms

On (date), the cost of (type of fee) will increase to $___.

On (date), the interest rate on your account will decrease to ___% with an annual percentage yield of ___%.

On (date), the minimum [daily balance/average daily balance] required to avoid imposition of a fee will increase to $___.

B-3—Model Clauses for Pre-Maturity Notices for Time Accounts

(a) Automatically renewable time accounts with maturities of one year or less but longer than one month

Your account will mature on (date).

If the account renews, the new maturity date will be (date).

The interest rate for the renewed account will be ___% with an annual percentage yield of ___%.

      or

The interest rate and annual percentage yield have not yet been determined. They will be available on (date). Please call (phone number) to learn the interest rate and annual percentage yield for your new account.

(b) Non-automatically renewable time accounts with maturities longer than one year

Your account will mature on (date).

If you do not renew the account, interest [will/will not] be paid after maturity.

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