Certificates Of Deposit

A Certificate of Deposit (CD) is when you deposit a specific amount for a specific amount of time. You can purchase CD's for different periods of time. The CD earns a higher rate of interest than any of our other interest-bearing accounts such as a NOW account, MMDA, or savings account. There are many rules that apply to CD's that do not apply to our other interest-bearing accounts such as:

• Specified term (period of time CD is purchased for).
• Early withdrawal penalties (EWP).
• Interest checks may be issued.
• No deposits or withdrawals except at maturity.
• Specific rate for the term of the CD (unless it is a variable rate CD).
• Grace period of 10 days after maturity to withdraw your money.
• CD is automatically renewable and has a 10 calendar day grace period before penalty is charged.

Peoples Bank & Trust offers the following terms for CD's:

In certain circumstances such as death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty.

If you close your account during the 10 day grace period, you will not receive the accrued interest.

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.

Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Interest is compounded and credited at maturity unless you choose to receive a check.

The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings (for example, quarterly interest checks).