Appendix 13.  

ANNUAL INTEREST RATE (AIR)

Your account earns interest at an annual interest rate of __%.

ANNUAL PERCENTAGE YIELD (APY)

If you leave your money on deposit for a full year, and leave the interest earned in your account, your account will earn an annual percentage yield of __ % (__ % in leap year).

For example, if you deposit $100 on January 1 and don't withdraw any money until December 31, you'll earn $__.

PERIODIC PERCENTAGE RATE (PPR)

The periodic percentage rate is the rate applied on a daily basis to the principal amount on deposit in your account on that day. This rate computes the earnings you are entitled to on that day.

Each day, your account will earn __ cents per $100.

HOW INTEREST IS CALCULATED

You earn interest every day on the amount of money in your account at __ p.m. that day.

INTEREST IS PAID TO YOUR ACCOUNT

On the __ day of every __ (Dates: __, __, __, __)

MINIMUM BALANCE

You must have at least $ __ in your account in order to earn interest.

MINIMUM TIME

You must have a savings account with us for at least __ days in order to earn interest.

CHARGES FOR WITHDRAWALS

You may withdraw money from your account __ times every __ without being charged. After that, you'll be charged __ for each withdrawal.

GRACE PERIODS

You earn interest from the first day of the month on money you deposit during the first __ days of the month.

You earn interest through the last day of the month on money you withdraw the last __ days of the month.

OTHER CHARGES

If you don't deposit or withdraw money from your account for __ years, you'll be charged $ __ a year until you deposit or withdraw money.

You will be charged $ __ if a check you deposit is returned because of insufficient funds or because the person who wrote the check ordered payment to be stopped.

QUESTIONS YOU MAY HAVE

(1) WHEN ARE DEPOSITS CREDITED TO MY ACCOUNT?

Cash, money orders, certified checks and cashier's checks deposited before __ p.m. Monday through Friday are credited the day you deposit them. Those deposited after 3 p.m., or on a Saturday, Sunday or bank holiday, are credited on the next banking day.

Checks from banks in New York City will be credited to your account within __ business days after they are deposited. Checks from bank outside New York City will be credited to your account within __ business days after they are deposited.

(2) WHAT HAPPENS IF A CHECK I DEPOSIT IN MY SAVINGS ACCOUNT BOUNCES?

We will mail the returned check to you with a statement of the balance in your account after the check was returned. You will be charged $ __whenever a check you deposit is returned because of insufficient funds, or because the person who wrote the check ordered payment to be stopped.

(3) WHAT HAPPENS IF I DON'T MAKE ANY DEPOSITS IN MY ACCOUNT OR PRESENT MY PASSBOOK TO THE BANK FOR POSTING OF INTEREST (OR DIVIDENDS)?

If you don't deposit or withdraw money from your account or present your passbook to the bank for posting of interest (or dividends) for __ years, you will be charged $ __ a year until you either deposit or withdraw money or present your passbook to the bank for posting of interest (or dividends).

If you don't deposit or withdraw money from your account or present your passbook to the bank for __ years, the account will be considered abandoned and will be turned over to New York State. You may get the money back from New York State by __.

(4) WOULD YOU REFUSE TO PAY ME THE MONEY IN MY ACCOUNT FOR ANY REASON?

If you owe us money for any reason (on a loan, or on checks not yet paid), we'll withhold that amount from your account before we will allow you to withdraw any money.

By law, we may require you to tell us __ days before you plan to withdraw money from your account.

(5) HOW CAN I CHECK THE INTEREST PAID TO MY ACCOUNT TO MAKE SURE IT IS THE CORRECT AMOUNT?

NOTE: Savings organizations should disclose all the information a consumer would need to verify interest paid on an account, including the periodic percentage rate, the period for which that rate was applied, and the method used to determine the balance to which the periodic percentage rate was applied.

Examples of model verification forms can be found in Check Your Interest by Richard Morse, Morse Publications, 2429 Lookout Drive, Manhattan, Kans. 66502.