Regular Retirement Term Deposit (CD) Accounts - Term of One Year or Greater

Account Disclosure Information

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This disclosure describes the terms and features of the Regular Retirement Term Deposit Acccount you have selected. Please refer to our Consumer Banking Services Agreement and current Fee Schedule and your I.R.A. Plan Agreement for additional information of importance to you.

In this disclosure, the words, "you" and "your" refer to the consumer who maintains a deposit account with the Bank.  The words "we" and "us" refer to Salem Five Cents Savings Bank.  If you have any questions about information provided here, please allow a bank representative to answer them for you.


Renewal Policy for All Term Deposit Accounts: Your account will automatically renew at maturity unless we are otherwise instructed by you or unless you are otherwise notified by us.

Notification will be sent to you in writing prior to the maturity date of your account.  You will have a grace period of 10 calendar days after maturity to renew the account, withdraw the funds, or transfer the funds to another account without penalty.  Interest will not be paid on the account during the grace period unless it is renewed as of the maturity date.

If you do not instruct us in writing as to how to handle your account on or prior to the maturity date, we will renew the account based on the renewal schedule noted below.  The interest rate will be the interest rate we offer on Regular IRA Term Deposit Accounts on the maturity date.

Existing Term         |       Standard Term Upon Renewal

12-17 month CD                 12-month CD
18-23 month CD                 18-month CD
24-29 month CD                 24-month CD
30-35 month CD                 30-month CD
36-41 month CD                 36-month CD
42-59 month CD                 42-month CD
60 month CD                       60-month CD

Interest Rate Information: 

Compounding and Crediting: Interest will be compounded monthly and will be credited to your account monthly.  If you close your account before interest is credited, you will not receive the accrued interest.

Minimum Balance Requirements: You must deposit at least $500 to open and maintain this account. You must maintain a minimum balance of $500 in your account each day to obtain the disclosed annual percentage yield. For Retirement Special CDs the minimum balance to open, maintain and obtain the disclosed annual percentage yield is $2,000.

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.   We calculate interest from the day of your deposit until, but not including, the day of your withdrawal.

Accrual of Interest on Deposits: Interest begins to accrue on the business day we receive credit for the deposit on non-cash items (for example, checks).

Transaction Limitations: After your account is opened, you may not make deposits into or withdrawals of principal from the account until the maturity day (except for withdrawals in the case of your death, disability or attainment of age 59 1/2).  Transactions are also limited by your I.R.A. Plan Agreement.

Early Withdrawal Penalty: When you open a Term Deposit Account, you agree to keep your funds on deposit until the maturity date.  You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal.  If you withdraw principal before the maturity date without our consent, a penalty equal to 4% of the principal balance withdrawn will be charged to your account.

If the amount of the penalty exceeds the amount of earned interest that has not already been paid to you, we may have to deduct some of the penalty from your principal.