Questions and Answers
What are the maturity options available for the Certificates of Deposit offered by Alliance Catholic Credit Union?
The maturity options range from three months to five years.
What is the penalty for early withdrawal from a CD with a maturity of 10 months?
The penalty will be equal to 90 days of interest.
What unique withdrawal feature does the 13-Month Flexible CD offer compared to other CDs?
It allows one withdrawal up to 25% of the principal balance without penalty.
Which two types of IRA Certificates does Alliance Catholic Credit Union offer?
Signup and view all the answers
How are dividends paid on the Certificates of Deposit?
Signup and view all the answers
Study Notes
Certificates of Deposit (CDs) Overview
- Alliance Catholic Credit Union offers two CD types: regular share certificates and IRA certificates.
- CDs are available for fixed terms, ranging from six months to five years.
Key Features
- Guaranteed rates throughout the entire term of the Certificate.
- Dividends are compounded and paid on a monthly basis.
Early Withdrawal Provisions
- A penalty is applied for early withdrawal before the maturity date.
- For CDs with a maturity of 9 months or less, the penalty is equivalent to 90 days of interest.
- For CDs with a maturity of 12 months or more (excluding the 13-Month Flexible CD), the penalty is 180 days of interest.
- The 13-Month Flexible CD allows one penalty-free withdrawal of up to 25% of the principal; additional withdrawals incur a penalty of 180 days of interest.
IRA Certificates
- Traditional and Roth IRA Certificates are offered to help members save for retirement.
- Emphasizes the importance of preparing financially for retirement, regardless of future relocation plans.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz provides an overview of Certificates of Deposit (CDs) offered by Alliance Catholic Credit Union. Learn about the options, terms, and benefits of holding CDs as regular share certificates or IRA certificates. Test your knowledge on how dividends work and the guaranteed rates for different terms.
