TRUTH-IN-SAVINGS DISCLOSURES

Except as specifically described, the following disclosures apply to all of the accounts:

1. Rate Information The Dividend Rates and Annual Percentage Yields on your accounts are set forth above. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the Dividend Rate and frequency of compounding for an annual period. The Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the Account. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.

2. Compounding and Crediting Dividends will be compounded and credited as set forth above. The Dividend Period begins on the first calendar day of the month and ends on the last calendar day of each month.

3. Balance Information The minimum balances required to open each account are set forth above. Dividends are calculated by the average daily balance method. The credit union adds the full amount of principal in the account each day of the period, divides that figure by the number of days in the period, and applies a periodic rate to the result.

4. Accrual of Dividends Dividends will begin to accrue on cash and non-cash (checks) deposits on the business day you make the deposit to your account. If you close your account prior to dividend period, accrued dividends will not be paid.

5. Transaction Limitations After your account is opened, you may not make additional deposits to your account. You may withdraw accrued, uncredited interest at the time of posting. During the grace period, additional deposits are permitted.

6. Maturity Your account will mature within the term set forth above or maturity date set forth on your Account Receipt or Renewal Notice.

7. Early Withdrawal Penalty We may impose a penalty if you withdraw any of the principal before the maturity date.

• a. Amount of Penalty. The amount of the early withdrawal penalty is based on the term of your account. The penalty schedule is as follows: 365 days or less--90 days dividends; more than 365 days--180 days dividends.
• b. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be 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 dividends have already been paid, the penalty will be deducted from the principal.
• c. 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:
1. When an account owner dies or is determined legally incompetant by a court or other body of competent jurisdiction.
2. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is an IRA and the owner attains age 59 1/2 or becomes disabled.

8. Renewal Policy For automatically renewable accounts, your account will automatically renew for another term upon maturity, and you have a grace period of ten (10) days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. Non-renewable accounts will not automatically renew, your funds will be transferred to a regular savings account.

9. Nontransferable/Nonnegotiable Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union. IRA accounts cannot be pledged.

10. Flex Certificate One time option to bump-up rate during term without penalty. The rate will bump-up to match rate currently in effect for an 18 month flex certificate term at the time this option is exercised. The new dividend rate will not be applied retroactively. There is a one time option to make additional deposit and a withdrawal to the principal amount during the term without penalty. Additional deposit must be a minimum of $1,000 with a maximum of $75,000.

The rates appearing in this Schedule are accurate and effective for Certificate Accounts as of the Effective Date indicated above. If you have any questions or require current rate information on your accounts, please call Sound Credit Union at (253) 383-2016.