This Rate and Fee Schedule sets forth current conditions, rates, fees and charges applicable to your Certificate at Whatcom Educational Credit Union at this time. The Credit Union may offer other rates and fees or amend the rates and fees contained in this schedule from time to time. Each account holder agrees to the terms set forth on this Rate and Fee Schedule and acknowledges that it is a part of the Membership and Account Agreement.

1. Rate Information. The Interest Rates and Annual Percentage Yields on your accounts are set forth on the reverse side. The Annual Percentage Yield 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. The Interest Rate and Annual Percentage Yield are fixed and will be in effect for the term of the Account. The Annual Percentage Yield is based on an assumption that interest earnings will remain on deposit until maturity. The withdrawal of earned interest will reduce earnings.

2. Compounding and Crediting. Interest will be compounded and credited quarterly. The interest period begins on the first calendar day of the interest period and ends on the last calendar day of the interest period. Exception: certificates with a six-month term are compounded and credited only once, upon maturity.

3. Balance Information. The minimum balances required to open each account are set forth on the reverse side. Interest is calculated by the daily balance method which applies a daily periodic rate to the principal in the account each day.

4. Accrual of Interest Earnings. Interest begins to accrue on cash and noncash deposits on the business day you make the deposit to your account.

5. Transaction Limitations. After your account is opened, you may not make additional deposits to your account. You may withdraw accrued, uncredited interest upon the crediting date.

6. Aggregate Deposits. The aggregate deposits you may have in all credit union accounts is $5,000,000 unless you obtain specific approval from the VP/CFO.

7. Maturity. Your account will mature within the term set forth above or maturity date set forth on your Account Receipt or Renewal Notice.

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

a. Amount of Penalty. The amount of the early withdrawal penalty is based on the term of your account. The penalty is as follows: for terms of 6 months-90 days’ interest; for terms of 12 months to 36 months-180 days’ interest; for terms of 48 months to 60 months-360 days interest, based on the current applicable Interest Rate and the total amount of the withdrawal.

b. How the Penalty Works. The penalty is calculated as a forfeiture of part of the interest that has been earned or as a forfeiture of the principal of the account.

c. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:

9. Renewal Policy. At account opening, you may elect to have a nonrenewable or automatically renewable account. For renewal accounts, your account will automatically renew for another term upon maturity, and you have a grace period of ten (10) days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. For nonrenewal accounts, you will receive interest until the account is transferred to another account of yours or paid to you by check.

10. 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.