TRUTH IN SAVINGS

ACCOUNT DISCLOSURE

 

The following information is provided by Chesapeake Bank of Maryland (“the Bank”) to make sure you have a complete understanding of the account you are opening or inquiring about.  Current interest rates with corresponding annual percentage yields are set forth on the Bank’s Interest Rate Sheet.  Rates are available by calling any branch office or visiting our website at www.chesapeakebank.com.

 

 

STATEMENT SAVINGS ACCOUNTS

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $100.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the average monthly balance in the account falls below $50.00.  Refer to our Schedule of Fees for the amount of the monthly service charge.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $100 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks)

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion. Transfers to another account or to third parties by preauthorized automatic or telephone transfer are limited to six per month with no more than three transfers by check, draft, debit card or similar order to third parties. We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

PASSBOOK ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $100.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the average monthly balance in the account falls below $50.00.  Refer to our Schedule of Fees for the amount of the monthly service charge.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $100 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks)

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion. Transfers to another account or to third parties by preauthorized automatic or telephone transfer are limited to six per month with no more than three transfers by check, draft, debit card or similar order to third parties. We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

CHRISTMAS CLUB ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $5.00 to open the account.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $100 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks).

WHEN YOUR ACCOUNT WILL MATURE:  Within one year or less depending on when your account is opened.  Christmas Club checks are mailed at maturity during the month of October.

RENEWAL OF ACCOUNT:  This account will not renew automatically at maturity.  At maturity, all funds will be mailed to you via check.

 

 

NOW CHECKING ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $250.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the balance in the account falls below $250.00 on any day of your monthly statement cycle.  Refer to our Schedule of Fees for the amount of the monthly service charge.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $250.00 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks)

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

FREE AND EASY CHECKING ACCOUNT

 

MINIUMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  The minimum opening balance requirement is $100.00.

Ø      TO MAINTAIN THE ACCOUNT:  There is no minimum balance required.

 

MONTHLY SERVICE CHARGE:  None.

 

DIVIDEND COMPUTATION:  No dividends are paid.

 

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

ELITE CHECKING ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $2,500.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the balance in the account falls below $2500.00 on any day of your monthly statement cycle.  Refer to our Schedule of Fees for the amount of the monthly service charge.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $250.00 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks)

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

 

N0N-PERSONAL NOW/CHECKING ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $250.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the balance in the account falls below $250.00 on any day of your monthly statement cycle.  Refer to our Schedule of Fees for the amount of the monthly service charge.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $250.00 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks).

TRANSACTION LIMITATIONS:  We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

 

MONEY MARKET DEPOSIT ACCOUNT

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $1,000.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the balance in the account falls below $1,000.00 on any day of your monthly statement cycle.  Refer to our Schedule of Fees for the amount of the monthly service charge

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks).

TRANSACTION LIMITATIONS:  Transfers to another account or to third parties by preauthorized automatic or telephone transfer are limited to six per month with no more than three transfers by check, draft, debit card or similar order to third parties. We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

 

 

 

 

 

PREMIER MONEY MARKET ACCOUNT

 

 

VARIABLE RATE ACCOUNT:  This is a variable rate account.  The interest rate and annual percentage yield disclosed in the rate section may change at any time at the sole discretion of the Bank.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $5,000.00 to open the account.

Ø      TO AVOID THE IMPOSITION OF FEES:  A Service Charge will be imposed every month if the balance in the account falls below $5,000.00 on any day of your monthly statement cycle.  Refer to our Schedule of Fees for the amount of the monthly service charge

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:

You must maintain a minimum balance of $5,000.00 in the account each day to obtain the disclosed annual percentage yield.

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.

ACCRUAL OF INTEREST ON NONCASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks).

TRANSACTION LIMITATIONS:  Transfers to another account or to third parties by preauthorized automatic or telephone transfer are limited to six per month with no more than three transfers by check, draft, debit card or similar order to third parties. We may limit cash withdrawals from the account at our sole discretion.  We may also require you to provide us at least 7 days prior written notice of your intention to withdraw or transfer funds from the account.

 

 

 

 

CERTIFICATES OF DEPOSIT

 

FIXED RATE ACCOUNT:  The interest rate on this account is fixed.  Our current interest rates with corresponding annual percentage yields are set forth on our Interest Rate Sheet section.  You will be paid this rate until the maturity date of the certificate.

COMPOUNDING AND CREDITING:  Interest is compounded and credited monthly.

MINIMUM BALANCE REQUIREMENTS:

Ø      TO OPEN THE ACCOUNT:  You must deposit $1,000.00 to open the account.

Ø      TO OBTAIN THE ANNUAL PERCENTAGE YIELD DISCLOSED:  You must maintain a minimum balance of $1,000.00 in the account to obtain a disclosed annual percentage yield.

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.

WITHDRAWAL OF INTEREST PRIOR TO MATURITY:  The annual percentage yield disclosed in the rate section assumes interest will remain on deposit until maturity.  Any withdrawal will reduce earnings.

ACCRUAL OF INTEREST ON NON-CASH DEPOSITS:  Interest begins to accrue on the business day you deposit non-cash items (for example, checks)

TRANSACTION LIMITATIONS:  You may not make deposits into your account until the maturity date.

WHEN YOUR ACCOUNT WILL MATURE:  The maturity date will be determined by the term of your account.

EARLY WITHDRAWAL PENALTY:  We impose a penalty if you withdraw any of the principal before the maturity date.  The amount of the penalty is as follows:

            CERTIFICATE TERM                     WITHDRAWAL PENALTY

            Less than 6 Months                                           3 Month’s Interest

            6 Months or Longer                                           6 Month’s Interest

If you reduce the balance in the account below the minimum balance requirement, we may impose the penalty on the entire account balance.  This penalty may result in a loss of principal.

SPECIAL IRA ACCOUNT PROVISIONS:  If the funds deposited in a certificate account are to open an Individual Retirement Account, no penalty will be imposed for any withdrawal that is made within 7 days of establishing the IRA Account.  In addition, to any penalty that we may impose for early withdrawal, under certain circumstances, there may be an additional IRS penalty.  See your Retirement Account Documents for details.

RENEWAL OF ACCOUNT:  Your account will automatically renew at maturity.  You will have 7 calendar days after the maturity date to withdraw your funds without being charged a penalty.