interest earnings on accounts
Annual Percentage Yield (APY) assumes the interest rate remains constant and all interest is credited to the account. The interest rate and maturity date of Certificates of Deposit are established on the date of issue or renewal, with the interest rate (or index) guaranteed for the initial term. Renewals will be for the minimum term and current interest rate for the specified plan as of the renewal date. A renewal notice shall be mailed for each maturing Certificate of Deposit specifying the new interest rate, term and maturity date. Interest on Certificates of Deposit with a term of one year or more will be paid quarterly by credit to the account. Accounts with balances of $1,000 or more may elect for interest to be paid quarterly by checks mailed or by transfers to a companion checking or savings account. Accounts with balances of $5,000 or more may elect for interest to be paid monthly by check or by transfer.
penalties for early withdrawals: certificates of deposit and individual retirement accounts
Premature withdrawals from Certificates of Deposit shall be subject to a penalty. For certificates with an original or renewal term of one year or less, or for the 14-month CD, the penalty shall be equal to 90 days interest at the contract rate, non-compounded. For certificates with an original or renewal term greater than one year, with the exception of the 14-month CD, the penalty shall be equal to 180 days interest at the contract rate, non-compounded. The penalty shall be assessed on the amount withdrawn unless such withdrawal should cause the balance to fall below the required minimum balance, in which case the penalty would be charged on the entire balance and the account would be closed.
Interest which has been credited to the account since the later date of account opening, renewal or interest rate endorsement may be withdrawn at any time without penalty. Withdrawals not later than 10 days after maturity or following the death or adjudication of incompetence of an Account Holder shall not be subject to penalty.
For Traditional Individual Retirement Accounts only (this excludes Roth IRAs) held under Capitol Federal's IRA Trust Agreement (except for Passbook or daily accounts), penalties shall be assessed on withdrawals (other than at maturity, including the ten day post-maturity grace period) until the individual attains 59½ years of age, at which time the IRA Account Holder may withdraw without penalty, subject to laws and regulations concerning distributions from an IRA account, which may result in tax or other penalty assessments by the Internal Revenue Service.
