Time Certificates of Deposit (TCDs)

Interest-bearing TCDs with a variety of maturity dates.

Other Charges: For maturities less than or equal to one (1) year: Early withdrawal penalty equal to thirty (30) days’ interest on the amount withdrawn subject to penalty. For maturities greater than one (1) year: Early withdrawal penalty equal to ninety (90) days’ interest on the amount withdrawn subject to penalty.

Rate Information: This account is an interest-bearing account. The interest rate and annual percentage yield are included in the Rate Chart, which is available upon request at any Skagit State Bank branch. Interest is accrued daily, compounded daily, and will be credited monthly. The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.

Balance Information: We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day.

Special Features: The interest rate and annual percentage yield will not change for the term of the account. Additional deposits may be made to short-term TCDs (six months or less). The account holder has ten (10) calendar days after maturity date to withdraw funds without penalty. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks).

Limitations: Withdrawals from the account may not be made until the maturity date. If the automatic renewal option is not selected, the account will not renew at maturity and the funds will no longer accrue interest. 

Interest Information: The annual percentage yield assumes interest will remain on deposit. A withdrawal will reduce earnings (only applicable to TCD and IRA). The daily balance method is used to calculate interest on the account. This method applies a daily periodic rate to the principal in the account each day. Contact a New Accounts representative for a current interest rate information sheet that lists the interest rates and corresponding annual percentage yields for accounts.

Dormant Accounts: Accounts that undergo no activity (debit or credit) for an extended time period will be reclassified as a dormant account. Dormant accounts will be subject to a regular monthly service charge of $5 (non-refundable per State of Washington). The time periods of inactivity are as follows:

• 24 months—All checking, money market, interest checking, and savings accounts
• 30 months—Time certificates of deposit
• 60 months—Safe deposit boxes

Note: Under current state abandoned property law, any property unclaimed after three years (with the exception of safe deposit boxes) must be relinquished to the custody of the State of Washington.