• Understanding Your Deposit Accounts ~Account Disclosures~
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Types of Share Accounts

We want to help you build your nest egg. Choosing the right savings program is an important step in realizing one's financial goals. The right investment account should be affordable, accessible, and safe. Hanover Federal Credit Union offers several deposit accounts with convenient access, competitive rates and federal insurance protection. The following outlines the features and guidelines of our regular share accounts. The features and guidelines of our other share account types are available on the tab above.

SHARE: At the Credit Union, members' savings accounts are called shares. In order to become a member of HFCU, an individual must open a Share account.

Minimum Deposit: The minimum deposit required for an HFCU Share account is $25 plus a one time membership fee of $5.00. To remain a member in good standing and use the services and other accounts of the Credit Union, a member must keep a Share account open with at least $25 on deposit.

Dividend Rate: The dividend rate paid on a Share account is determined by the Board of Directors based on Credit Union earnings and market interest rates and is subject to change daily. Dividends are compounded daily and paid quarterly.

Service Charges: If a Share account balance drops below $25 on any day of the month, a $5 fee will be assessed on the account as of that date.

Availability of Funds: Funds may be accessed through the CU24, Member Access, CU Here, VISA/PLUS ATM networks, and the HFCU internet web site or our branch office. Withdrawals in our office may be received in cash, CU Check or personal money orders.

Information Services: Statements including the balance, dividends paid and transactions on the account are mailed quarterly. Members may also use the HFCU internet web site at www.hanoverfcu.org for current information and transfers on their accounts by using their assigned username and password. Members wishing to use the credit union web site must first establish their access agreement with the credit union prior to gaining access to the credit union secured members area.

Savings Automatically: Payroll Deduction and Direct Deposit may be available for your Share account. With Payroll Deduction, you may arrange for a portion of your net pay to be automatically deposited into your account.

Direct Deposit allows you to avoid waiting in line on busy paydays to deposit your pay check and is available through participating employers and state, local and federal governments.

Ask your employer payroll or human services office if you are not sure if Payroll Deduction and/or Direct Deposit is available where you work.

Christmas and Summer Club accounts are also available to our members. These club accounts Pay dividends at the same rate as a regular share account. A minimum balance of $25 is required to retain the accounts. Christmas Club Checks are mailed to account owners on or about the 15th of November each year. Summer Funds Club Checks are mailed in July 15th and August 15th each year. Early withdrawals from club accounts will have a $5 transaction fee.

Super Saver Accounts: Super Saver accounts pay a higher dividend rate and require a minimum balance of $1000.00. There is no time limit or term on this type of account.

Borrowing Privileges: Funds deposited into Share accounts may be used as collateral on Credit Union loans at preferred rates.

Share Term Certificates

A Share Term Certificate (previously referred to as a "CD" or "Certificate of Deposit") is a fixed rate, closed-end, time deposit. In other words, a Share Term Certificate (STC) is a contract between the Credit Union and a member. The Credit Union agrees to pay a set interest rate on a specific sum for a particular period of time.

Certificates have an established minimum investment amount and a predetermined maturity period. No additional deposits can be added to a Certificate after it has been opened and no partial withdrawal of principal is allowed. The interest rate is fixed for the duration of the Certificate and will not fluctuate.

Terms: HFCU Certificates may be opened for 6, 12, 18, 24, 30, 36, 48 or 60 month terms. All certificates purchased prior to September 31, 1998, will automatically transfer into another deposit account at maturity, which is the indicated number of months from the issue date. Certificates purchased after this date will automatically renew into a new certificate for the same term at the then offered interest rate for that term unless you specifically request that the principal be transferred into another deposit account at maturity.

Minimum Deposit: The minimum deposit required for an HFCU Certificate is $500. Certificates may be opened in any amount greater than the minimum.

Interest Rate: The available interest rates on Certificates are subject to change daily. Rates are based on HFCU's cost of funds, competition and general market conditions. Interest accrues daily and compounds to the certificate monthly. Interest may be deposited to another deposit account or issued to you in the form of a check. Should a member decide to have a monthly dividend disbursal the stated APY will not apply as the annual percentage yield is the interest rate achieved through compounding of earned interest.

Interest Payment: Interest earned on certificates purchased will automatically post to the Certificate of deposit account monthly on the first day of the next month. Dividends earned May not be withdrawn until maturity. Dividends will not automatically transfer monthly to any other deposit account unless specifically requested at the time of establishment. Dividend transfers for 6, 12 or 24 month terms only may transfer at maturity upon request or will automatically renew with the principal at maturity.

Service Charges: HFCU Certificates have no transaction costs or service fees.

Borrowing Privileges: Members may borrow money from HFCU at special interest rates by using their Share Term Certificate as collateral. This type of loan is set up as a term note and is due on the maturity date of the Certificate or when the Certificate is redeemed, whichever date is first. Certificates can not be used as collateral at other financial institutions nor assigned to other financial institutions.

Early Redemption: Certificates may be redeemed prior to maturity; however, there are interest penalties for early withdrawals. A member who cancels a Certificate will lose 90 Day's interest or all interest earned, whichever is less. The three-month (91-day) certificate will have a thirty day interest penalty.

Renewing/Maturing Certificates: Certificates purchased prior to September 31, 1998 do not automatically renew. At maturity the principal and any unpaid interest is transferred automatically into another deposit account, then transferred to a new certificate account. Fourteen days prior to maturity HFCU will mail you a reminder notice of the upcoming maturity. These funds are available for your use or you can purchase another certificate with these funds with a phone call or a visit to our Credit Union office. Unless specifically requested by you, all certificates purchased on or after October 1, 1998 automatically renew at the maturity date for the same term at the then offered interest rate for that term. Fourteen days prior to the renewal a notice will be sent to remind you of the upcoming renewal. A grace period of 10 days after the renewal is allowed for cancellation of the renewed STC without penalty. If a certificate is cancelled during the grace period; interest will be paid from the renewal date to the cancellation date at the existing share account dividend rate. If you request that a certificate purchased after October 1, 1998 and not automatically renew, the principal and interest will be transferred at maturity to another deposit account and you will receive a maturity notice fourteen days prior to the maturity.

Individual Retirement Accounts
(IRA's)

Super Saver Account

Summer Savers

Checking Services