Individual Retirement Account/Certificate of Deposit

RATE INFORMATION. Please refer to our rate sheet for the interest rate and annual percentage yield (APY) on this account. You will be paid this interest rate until maturity. 91-day Certificates of Deposit earn simple interest.

COMPOUNDING AND CREDITING. Interest will be compounded monthly and will be credited to your account monthly. The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. If interest is credited to another account or paid to you by check, this may reduce earnings and may negate the effect of interest compounding. If you close your account before interest is credited, you will not receive the accrued interest.

MINIMUM BALANCE REQUIREMENTS. Please refer to our rate sheet for the minimum balance required to open this account as well as the minimum daily balance required to obtain the disclosed annual percentage yield. You will earn interest for every day during the period that your account equals or exceeds the minimum daily balance requirement.

DORMANT/INACTIVE ACCOUNT INFORMATION. A dormancy fee may be charged to your account when your account has been inactive for 6 months. You understand that your account balance may be escheated to the Commonwealth of Massachusetts after 3 years of inactivity. If your account is escheated it may be subject to an escheatment fee. Please see the Bank’s Schedule of Fees for applicable charges.

BALANCE COMPUTATION METHOD. We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. ACCRUAL ON NONCASH DEPOSITS. Interest begins to accrue on the business day you deposit noncash items (for example, checks).

TRANSACTION LIMITATIONS. You may not make deposits into or withdrawals from your account until the maturity date. Individual Retirement Accounts (IRAs) are subject to limitations and/or penalties imposed by the Internal Revenue Service. Please see your IRA Agreement or your tax advisor for additional information.

MATURITY DATE. Your account will mature                          .

EARLY WITHDRAWAL PROVISIONS. A penalty will be charged if we permit you to withdraw your deposit before the maturity date. The amount of the penalty, based on the principal to be withdrawn, will be determined as follows:

1. For certificates of deposit with original terms less than and including 1 year, the penalty will be the equivalent of 90 days interest.
2. For certificates of deposit with original terms greater than 1 year, the penalty will be the equivalent of 180 days interest.
3. If you are under the age of 59 1/2, you will also be charged a penalty tax by the Internal Revenue Service.

We will permit a withdrawal from your certificate of deposit or IRA by your legal representative without imposition of a penalty subsequent to your death, or a declaration by a court of your incompetency.

RENEWAL POLICIES. Your account will automatically renew at maturity. You will have a grace period of 9 calendar days after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty.

At the close of the grace period, if an account with the same term is being offered this account will automatically be renewed for the same period, at the rate in effect at that time, unless you inform an otherwise during the grace period.

If a certificate of deposit with the same term is not being offered at maturity, and we have not received instructions from you, this account will automatically be renewed for a like term at the rate in effect at the close of the grace period.

ADDITIONAL INFORMATION REGARDING YOUR ACCOUNT.

CHANGE IN TERMS:

The Village Bank will give advance notice to affected consumers of any change in a term required to be disclosed if the change may reduce the annual percentage yield or adversely affect the consumer. The notice will include the effective date of the change. The notice will be mailed or delivered at least 30 calendar days before the effective date of the change.

CHANGE OF ADDRESS (POSTAL OR EMAIL):

You agree to notify us in writing of any permanent change of address. Any notice or statement mailed to the last address appearing on our records will be deemed delivered and binding for all purposes.

WHERE TO GET FURTHER INFORMATION:

If you have any questions about the information contained in this disclosure, or would like further information about our checking, savings, investment or lending services, please ask a Customer Services Representative or call us at 617-969-4300. You may also contact us in writing at:

The Village Bank
320 Needham Street, Suite 200
Newton, MA 02464

FEES AND CHARGES. Please refer to the separate fee schedule provided to you with this disclosure for information about fees and charges associated with this account A fee schedule will be provided to you at the time you open an account, periodically when fees or charges change, and upon request.

Revised 06/2020