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Truth-in-Savings Disclosure for Term Deposit Accounts

Certificate of Deposit Accounts (CDs)

We offer a variety of fixed rate, term certificates - Regular and Special Certificates and No Penalty Certificates. The Special and No-Penalty Certificates are available for a limited period of time and offer the best rates.

We offer a variable rate IRA certificate for a period of 18 months. You may select a fixed rate and term IRA from any of the regular or special certificates.

Earnings from all certificates (except IRA) may be transferred to another account of your choice or added to the principal. Earnings must remain on deposit within the certificate in order to obtain the stated annual percentage yield.

Term Deposits	Minimum Deposit - minimum to earn	Rate Fixed or Variable	Auto Renewal	Add-on deposits permitted	Penalties for early withdrawals
Regular CD	$500	Fixed	yes	NO	yes, see penalties below
Special CD	$1,000	Fixed	yes, see renewal policy below	NO	yes, see penalties below
IRAs	$100	Fixed	yes, see renewal policy below	NO	yes, - may be subject to 10% penalty by IRS plus early withdrawal penalties - see penalties below
IRA 18-month	$100	Variable	yes	YES	yes, may be subject to 10% penalty by IRS plus early withdrawal penalties - see penalties below
No Penalty CDs	$10,000	Fixed	yes, see renewal policy below	NO	One partial withdrawal (or closure) is permitted per term - penalty free. A penalty will be imposed for any withdrawal during the first 7 days and for more than one partial withdrawal thereafter. Not available for IRAs.

Minimum Balance Requirements: A deposit of $500.00 is required to open regular term certificates; $1,000 is required to open special certificates: $100 is required to open an IRA; and $10,000 is required to open a no-penalty CD.

Transaction Limitations: Deposits are not permitted during the term of the investment, except the 18-month IRA. Early withdrawal penalties may apply.

Determination of Rate: The interest rate is not tied to an index, unless specifically stated by the product.

Rate Information: Please refer to our current Rate Sheet for applicable Interest Rates and Annual Percentage Yields (APYs) or call 1.800.950.0236 anytime, day or night. The fixed rate shown on your Certificate of Deposit is guaranteed for the term of the investment. EXCEPTION - Our 18-month IRA certificate, has a variable rate. The rate adjusts quarterly and is 10 basis points above the average discount rate of the 52 week Treasury Bill Rate.

Balance Computation 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.

Compounding and Crediting Frequency: The interest rate compounds daily and will be credited to your account quarterly.

Annual Percentage Yield: Assumes principal and interest will remain on deposit. A withdrawal will reduce earnings.

Accrual of Interest on Noncash Deposits: Interest begins to accrue on the business day you deposit noncash items. (An example of noncash items is checks.)

Renewal Policy: ALL AFSB certificates automatically renew at the rate applicable on the maturity date. Regular CDs renew to the same term as the original investment. The Special and the No-Penalty CDs will automatically renew to a Regular Certificate and the term will be equal to or closest to the original term depending on the then publicly available certificates offered by AFSB. To obtain the higher rates offered on Special and No-Penalty CDs you must contact the bank prior to or at maturity of the term investment, and request the certificate be renewed as a Special or No-Penalty Certificate. To obtain the current rates for all certificates, please call 1.800.950.0236.

Grace Period: You have 7 calendar days beginning with the maturity date to withdraw funds without a penalty. You may also add additional deposits to your certificates during the grace period.

Early Withdrawal Penalties: We will impose a penalty if you withdraw funds before maturity on Regular, Special and IRA Certificates.

For a term of 31 days or less, the penalty will be the greater of : (1) all of the interest earned on the amount withdrawn from the most recent date of deposit or last renewal date, or (2) all the interest that could have been earned on the amount withdrawn during a period equal to one-half of the maturity period.
For a term of more than 31 days up to and including one year - the penalty will be three month’s interest on the amount withdrawn.
For a term of more than one year and up to and including two years, the penalty will be six month’s of interest on the amount withdrawn.
For a term with more than two years and up to and including three years, the penalty will be 12 month’s interest on the amount withdrawn.
For a term of more than three years, the penalty will be 18 month’s interest on the amount withdrawn.
For IRAs, you may be assessed additional penalties for early withdrawal by the IRS.

No PENALTY Certificates - You are permitted one penalty-free withdrawal per term. The withdrawal may be a partial or full distribution of the funds. A penalty will be imposed for any withdrawal during the first 7 calendar days and for more than one partial withdrawal thereafter. Penalties are determined by the term of the certificate - see penalties above. (No-Penalty certificates are not available for IRA investments. )

Fees: Please refer to our separate fee schedule for additional information and charges. Fees may reduce earnings on your account.