| 1-60 MONTH SHARE CERTIFICATE | CESA SHARE CERTIFICATE* | |||
| Member Profile | You want a higher dividend rate than a basic savings account and a short-term investment |
You want to save
for a child’s education and want a higher rate than a
basic savings account |
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| Minimum Opening Deposit | $500 |
$500 |
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| Terms | 1-60 month(s) |
12, 18, or 30 months |
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| Dividends** | Accrued daily, paid monthly, quarterly or at maturity |
Accrued daily, paid monthly, quarterly or at maturity |
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| Deposits | You may add to the Share certificate at any time as long as the minimum deposit made is $500 |
Each contribution must be a minimum of $500 and not exceed $2000 in any tax year. You may add to a CESA Share certificate at any time as long as the minimum deposit is $500 and does not exceed the annual limit requirement. |
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| Early Withdrawal Penalty | No loss of principal balance. Up to 90-days loss of dividends earned, if term is year or less. Up to 180-days loss of dividends earned on terms greater than one year. |
No loss of principal balance. Up to 90-days loss of dividends earned, if term is year or less. Up to 180-days loss of dividends earned on terms greater than one year. |
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| IRS Penalties | None unless it is an IRA. |
Tax penalty – Earnings
not withdrawn for qualified education expenses subject to taxes
and a 10% penalty. |
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| Insurance | Federally-insured up to $100,000 by NCUA. |
Federally-insured up to $100,000 by NCUA. Insured in the name of the true owner (the student). The funds in the account are added to any other individual account owned by the true owner. |
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| Other | Also available as a share account. |
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| *This brochure is effective for tax-year 2004 and thereafter. This brochure is intended to provide general information on Federal tax laws governing IRAs. It is not intended to provide legal advice or be a detailed explanation of the rules or how such rules may apply to your individual circumstances. For specific information, you are encouraged to consult your tax or legal professional. The IRS website, www.irs.gov, may also provide helpful information. | ||||
**Nature of Dividends: Dividends on certificates are contractual. The dividend rate and annual percentage yield may change at any time as determined by the board of Directors. |
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