Certificate Penalties

We may impose a substantial penalty if you withdraw any of your principal balance before the maturity date. For Share Certificates as well as IRA Certificates, the following schedule of penalties will apply:

Certificates with original maturities of up to 1 year: 120 days dividends;
Certificates with original maturities of 1 to 3 years: 180 days dividends; and
Certificates with original maturities of more than 3 years: 365 days dividends.

How the penalty works:

The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal balance.

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:

  • When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
  • Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment.
  • Where the account is an Individual Retirement Account (IRA) and the owner attains age 59 1/2 or becomes disabled.


Your account is non-transferable and non-negotiable. The funds in your account may not be pledged to secure an obligation of owner, except obligations with this credit union.

The rates and yields appearing in the Rate Schedule are accurate and effective for accounts as of the date indicated. If you have any questions or require current rate information on your accounts, please call OTIS Federal Credit Union at 897-0900, 1-800-848-3688 or email us.