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Regular Term Deposit (CD) Accounts of Less Than One Year


Account Disclosure Information



Are you opening an account online? After reviewing this document, please close the window and you will be returned to your application to complete it.

This disclosure describes the terms and features of the Regular Term Deposit Account you have selected. Please refer to our Consumer Banking Services Agreement and our current Fee Schedule for additional information.

In this disclosure, “you” and “your” refer to the customer, and “we” and “us” refer to Salem Five Cents Savings Bank.

If you have any questions, please contact a bank representative.

Renewal Policy for All Term Deposit Accounts:
Your account will automatically renew at maturity unless otherwise instructed.

For terms greater than 31 days, notice will be provided prior to maturity. You will receive a 10-day grace period after maturity to renew, withdraw, or transfer funds without penalty. Interest is not paid during the grace period unless the account is renewed.

If no instructions are received, your account will renew based on the schedule below at current rates.

Existing Term | Standard Term Upon Renewal
3–5 Month (91–181 day) CD → 3-month (91 day) CD
6–11 Month (182–364 day) CD → 6-month (182 day) CD

Interest Rate Information:

The Interest rate on your 3 Month CD is 0.05% with an Annual Percentage Yield of 0.05%. You will be paid this rate until the maturity date of the account.

The Interest rate on your 6 Month CD is 2.76% with an Annual Percentage Yield of 2.76%. You will be paid this rate until the maturity date of the account.



The maturity date is the last day of your CD’s term. If it falls on a Sunday or bank holiday, funds will be available the next business day.

Compounding and Crediting:
Interest is not compounded (simple interest). It is either credited at maturity or paid monthly.

Minimum Balance Requirements:
Minimum deposit and balance required: $2,500.

Balance Computation Method:
Daily balance method is used to calculate interest.

Accrual of Interest:
Interest begins no later than the business day credit is received. Accounts not funded within 10 business days may be closed.

Transaction Limitations:
No deposits or principal withdrawals allowed before maturity.

Early Withdrawal Penalty:
Penalty equals 2% of withdrawn principal. If the penalty exceeds earned interest, it may reduce principal.