Certificate of Deposit

Certificate of Deposit

FSNB's Certificates of Deposit (CDs) are Time Deposits. That is, a contract between you and FSNB that you will deposit a minimum amount of $500 for a stated period of time (Minimum of 30 days and maximum of 5 years). FSNB agrees to pay you the Amount of Deposit at the original maturity date (or any successive maturity date, if renewed) plus interest to that maturity date. Interest will be computed at the compounding frequency and at the interest rate as stated in the CD contract - for the initial term, and at the interest rate(s) established, as provided for in the contract for any successive term(s).

Types of Certificates:

Automatically Renewable - Fixed Rate: This CD will automatically renew at the maturity date for a successive term equal to the initial term. You will have 10 days after maturity date to withdraw funds without penalty. The CD will not renew if this Certificate is surrendered at maturity or within 10 days after maturity, or if FSNB gives you written notice to redeem the CD. If the CD is redeemed within ten days after maturity, interest will only be paid through the maturity date.

Interest Rate:

Interest rates vary depending on the length of time you select.

Interest Calculation:

FSNB uses the Daily Balance Method to calculate interest. This method applies the contracted interest rate to the principal in the account each day. Interest begins to accrue no later than the business day of the day of deposit.

Compounding:

Interest may be added back to the CD only at maturity, or annually if the term is greater than 12 months. CD's with a term of less than one year will qualify for compounding of interest. If the CD provides for compounding of interest (CD's less than 1 year) the Annual Percentage Yield assumes you will not withdraw any interest prior to maturity.

Payment of Interest:

You may choose to have your interest added back to the CD ( Annually or at maturity), or automatically deposited into your FSNB checking or savings account. You may choose the timing for your interest payments: monthly, quarterly, semi-annually or annually. For CD’s with a maturity longer than one year, interest will be paid at least annually.

Penalties for Early Withdrawal:

No principal amount may be withdrawn from the Certificate of Deposit until maturity date, except with the permission of FSNB, and such early withdrawal is subject to a penalty. The penalty, however, will not be assessed in the event of death or a determination of incompetency of the payee or assigns. The amount of the penalty will be computed using the simple interest rate being paid on the CD. The penalty will be: For CD of 12 months or less 91 days of interest. For CD longer than 12 months 182 days of interest.