Certificates of Deposit

Earn higher rates of interest by investing in a Certificate of Deposit which can be opened in various amounts or terms

7 Day Notice

  • Minimum opening balance - $10,000.
  • The day the account is opened is referred to as your "Notice Day".
  • We use the daily balance method to calculate the interest on your account.  This method applies a daily periodic rate to the collected principal in the account each day.
  • Interest for your account will compounded daily.  This method adds interest earned to the principal in the the account each day in order to calculate the next day's interest earned.
  • Rate change frequency is at the Bank's discretion.
  • Interest for the account will be posted to the account on each notice day.
  • You must maintain a minimum balance of $10,000 in your account every day to obtain the annual percentage yield.  In the event your balance drops below $10,000, the account will earn interest at the regular passbook savings rate for those days your balance remains below $10,000.
  • Deposits in the amount of $5,000 or more are allowed to your account on each "Notice Day".
  • Withdrawals are allowed without penalty on each "Notice Day".
  • Withdrawals on a day other than the "notice Day' is subject to a penalty equal to 7 days loss of interest whether earned or unearned.
  • Grace Day: none
  • This account will be renewed automatically at maturity for a like term unless notified otherwise by the accountholder.

91 - 364 Day Certificates of Deposit

  • Minimum opening balance - $2,500.00
  • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the collected principal in the account each day.
  • CD's less than one year use a true simple method to calculate interest on your account. This method calculates interest on the original collected principal only.
  • Interest on your account will be distributed at maturity, however, customers may choose to receive a monthly or quarterly interest check or interest transfer to another account.
  • You must maintain a minimum balance of $2,500.00 in your account every day, to obtain the annual percentage yield.
  • The annual percentage yield assumes interest remains on deposit until maturity. A withdrawal will reduce earnings.
  • After the account is opened, you may not make deposits into the account until the maturity date.
  • If you withdraw any principal before the maturity date, a penalty equal to 91 days loss of interest will be charged to your account, whether earned or unearned.
  • This account will be automatically renewed at maturity for a like term unless otherwise specified in the Certificate. You have a grace period seven (7) calendar days after the maturity date to withdraw the funds without being charged a penalty.

1 Year - 60 Month Certificates of Deposit

  • Minimum opening balance - $500.00 or $2,500.00 depending on the product selected.
  • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the collected principal in the account each day.
  • Interest for your account will be compounded depending on which product type you choose.
    The compounding frequencies are as follows:
    • Daily compounding - this method adds interest earned to the principal in the account each day in order to calculate the next day's interest earned.
    • Monthly compounding - this method adds interest earned to the principal in the account each month in order to calculate the next month's interest.
    • Quarterly compounding - this method adds interest earned to the principal in the account each quarter in order to calculate the next quarter's interest.
    • True simple - this method calculates interest on the original principal only.
  • Interest for your account will be distributed monthly, quarterly, annually, or at maturity, depending on the product type selected.
  • You must maintain a minimum balance of $500.00 or $2,500.00 in your account every day to obtain the annual percentage yield.
  • The annual percentage yield assumes interest remains on deposit until maturity. A withdrawal will reduce earnings.
  • After the account is opened, you may not make deposits into the account until the maturity date.
  • If you withdraw any principal before the maturity date, a penalty equal to 182 days loss of interest will be charged to your account, whether earned or unearned. In the case of Certificates of one year, a penalty equal to 91 days loss of interest will be charged to your account, whether earned or unearned.
  • This account will be automatically renewed at maturity for a like term unless otherwise specified in the Certificate. You have a grace period of seven (7) calendar days after the maturity date to withdraw the funds without being charged a penalty.

The following products compound interest daily and pay monthly or quarterly depending upon customer choice:
12 Month
18 Month
30 Month
36 - 59 Month
60 Month

The following products are true simple and pay annually:

2 Year *

INTEREST PLUS C.D.
4 Year *
7 Year *
10 Year *

The following products compound and pay monthly or quarterly depending upon customer choice:

12 Month *
30 Month *
48 Month *
72 Month *
96 Month *

The following products are true simple and pay monthly or quarterly depending upon customer choice:

12 Month *
60 Month *

*Products no longer offered at A.J. Smith Federal Savings Bank.

25 Month to 35 Month Certificates of Deposit

  • Minimum opening balance - $2,500.00
  • We use the daily balance method to calculate the interest on your account.  This method applies a daily periodic rate to the collected principal in the account each day.
  • Interest accrued on your account may be distributed monthly or quarterly, depending on the customer's choice. 
  • You must maintain a minimum balance of $2500.00 in your account every day to obtain the annual percentage yield.
  • The annual percentage yield assumes interest remains on deposit until maturity.
  • After the account is opened, you may not make deposits into the account until the maturity date.
  • If you withdraw any principal before the maturity date, a penalty equal to 182 days loss of interest will be charged to your account, whether earned or unearned.
  • At the expiration of the term, this certificate will convert to the terms, conditions and APY of the prevailing regular passbook savings rate.
  • Rate may be bumped up once during the term of the certificate without extending the current maturity date.

 

FDIC Transaction Account Guarantee Program

AJ Smith Federal Savings Bank is participating in the FDIC's Transaction Account Guarantee Program.  Under this program, through December 31, 2013, all non-interest-bearing transaction accounts and NOW accounts with an interest rate of 0.25% or less are fully guaranteed by the FDIC for the entire amount in the account.  Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

 

 

 

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New Deposit Insurance Limits

Effective July 21, 2010, the FDIC has permanently increased the amount of standard deposit insurance to a maximum of $250,000.  The $250,000 applies per depositor, per depository institution for each account ownership category.