Truth in Savings Disclosure

Truth in Savings Disclosure – Certificates of Deposit

All accounts are subject to membership eligibility requirements.

The following disclosures apply to certificates of deposit accounts.

APY = Annual Percentage Yield
APR = Annual Percentage Rate

APY and promotional offers are subject to change at any time without notice. Certain restrictions may apply. Fees could reduce earnings on the interest earning accounts.

If applicable, new money is defined as money that has not been on deposit at credit union during the past 30 days.

The minimum initial deposit for certificate of deposit accounts is $1,000.

The minimum balance to maintain a certificate of deposit account is $1,000.

Deposits are insured by the National Credit Union Administration (NCUA) up to $250,000.

One (1) promotional CD per member.

At maturity, CD’s will automatically renew, unless action is taken by you.

The following disclosures apply to all certificate of deposit accounts.

1. Rate Information. The Annual Percentage Yield (APY) is a percentage rate that reflects the total amount of interest to be paid on an account based on the interest rate and frequency of compounding for an annual period. For all accounts, the Interest Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For accounts subject to Interest compounding, the Annual Percentage Yield is based on an assumption that interest will remain on deposit until maturity. A withdrawal of interest or principal will reduce earnings.

The interest rates and APY may change at any time as determined by Smart Financials’ Board of Directors.

The rates and APY provided in our Rate Sheet are accurate as of the effective date indicated on our website at

2. Interest Compounding Method. For certificates of deposit, interest is calculated by the daily balance method which applies a daily periodic rate to the principle in the account each day.

3. Funds Availability. For all accounts, deposits are subject to the credit union's Funds Availability Policy Disclosure.

4. Accrual of Interest. For all accounts, interest will begin to accrue on noncash deposits (e.g., checks) on the business day you make the deposit to your account. Refer to the Member Account Disclosures for additional details. For all accounts, if you close your account before accrued interest is credited, accrued interest may not be paid.

5. Transaction Limitations. No [additional] deposits other than the opening deposit may be made to certificate of deposit accounts.

Accounts that fall below the required minimum balance will be subject to closure by the credit union and accrued interest may not be paid.

6. Maturity. Your account will mature as indicated at account opening.

7. Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal before the maturity date.

All withdrawal(s) will be subject to any required tax withholding.

Amount of Penalty. A penalty will be imposed if you withdraw any of the funds in your account within the first six days after your account is opened. The penalty will equal seven days’ interest on your account.

If you make partial withdrawals of principal prior to the maturity date, penalties may be imposed on the amount of the withdrawal.

A penalty will be imposed if you redeem your certificate prior to the maturity date. The penalty will equal all interest earned on 91-day certificates, 90 days' interest on 6 month certificates, 180 days' interest on 12, 18 and 24 month certificates, and 270 days' interest on 30, 36, 48, and 60 month certificates.

How the Penalty Works. The penalty is calculated as a forfeiture of part of the interest that has been or would be earned on the account. It applies whether or not the interest has been earned. In other words, if the account has not yet earned enough interest or if the interest has already been paid, the penalty will be deducted from the principal.

Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty when an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.

8. Renewal Policy. For all accounts, you have a grace period of ten (10) calendar days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. The rate and APY that will apply to your account if the certificate is renewed may not be determined as of the date of this notice. At maturity, you may call the Credit Union at (713) 850-1600 to determine the rate and APY that will apply to your account if it is renewed. We reserve the right to decline a Certificate renewal. Each renewal term will be the same as the original term beginning on the maturity date unless that term was promotional or is no longer offered. If the term was promotional or is no longer offered, the new term will be disclosed on the maturity notice sent to you at least 30 days prior to maturity. The renewal term will begin on the maturity date of the certificate. The rate will be the same as we offer on new certificate of deposit accounts as of the maturity date, which has the same term, minimum balance requirements (if any), and other features as the original certificate of deposit account.

9. Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.

If you have any questions or require current rate and fee information on your accounts, please call the Credit Union.

10. Minimum balance requirements. The minimum balance requirements may include a minimum opening deposit and a minimum balance to keep the account open. You may be required to maintain a daily minimum balance to earn the stated Annual Percentage Yield (APY) for that account.

11. Fee Schedule. See Smart Financials’ Fee Schedule for a listing of fees and charges applicable to your account(s) at