Purpose
Allow members to deposit funds in a Share Certificate account for an extended time period and normally at an interest rate higher than the share account. 

Eligibility
In order to open a share certificate account, a member or association of members must have the following:

1) an open share account in good standing

2) no past due loans payments or unpaid account fees due to the Credit Union

3) minimum initial deposit amount of $1,000.00 to open a share certificate

4) agree to the minimum terms to open an share certificate

Application
A VECU account representative will accept an application for a share certificate in the Valdosta Educators Credit Union office. 

Fees
There is no charge to purchase a VECU share certificate.

Rate Information

The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period.  For share certificate accounts, the dividend rate and annual percentage yield is fixed and will be in effect for the term of the account.  The annual percentage yield is based on an assumption that dividends will remain on deposit until maturity.  A withdrawal of dividends will reduce earnings.  

Nature of Dividends

The compounding and crediting of dividends applicable to each account is set forth in the rate schedule.  For share certificate accounts, dividends are calculated by the daily balance method which applies a daily periodic principal in the account each day.  For share certificate accounts, dividends will begin to accrue on non-cash deposits (e.g. checks) on the business day a member makes a deposit to an account.

Dividend Rate
The current dividend rate is posted on the Rate Board or in the VECU office. 

Maturity
The account will mature as indicated on the rate and fee schedule or on the account receipt or renewal notice.

Renewal
For share certificate accounts, the account will not automatically renew but a member may renew the account at his/her option.  Dividends will not be paid after maturity; amounts remain in non-dividend bearing account until election by member.

Disclosures

As stated on the certificate given to the member, the purchase of share certificates are in accordance with the terms of the Membership and Account Agreement, Account Card, any applicable Account Change Card(s), and the Truth-in-Savings Disclosure.  The account is non-transferable and non-negotiable.  The funds in the account may not be pledged to secure any obligation of an owner except obligations with the Credit Union.

Statements
Share certificate transactions will appear on the member’s periodic statement.  E-statements are available at no charge to members through the Online Banking system.  If the member requests a statement at another interval, a fee may be charged according to the VECU Fee Schedule. 

Early Withdrawal Penalty
VECU may impose a penalty to any member requesting early withdrawal of his/her share certificate funds.  The amount of the early withdrawal penalty is 90 days (3 months) dividends.  The penalty is calculated as a forfeiture of part of the dividends that have 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 dividends or if the dividend has already been paid the penalty will be deducted from the principal.