Penn Security Deposit Services are designed for your convenience.
There are many important features and terms of some of our deposit accounts. In this section, the words "you" and "yours" mean those who own, sign as applicants, or any authorized user(s) of the following accounts. The words "we", "us" and "our" mean the Bank.
Disclosure of Account Terms
This disclosure contains information about terms, fees, and interest rates for some of the accounts we offer.
Savings Account
Savings accounts are the tried and true way to save and at the same time have immediate access to your funds. All savings accounts at Penn Security are passbook type accounts.
Savings accounts, like all other deposit accounts at Penn Security, are insured by the F.D.I.C. up to $100,000 per depositor.
All types of customers may have savings accounts, but business corporations are limited to a maximum savings account balance of $100,000.
Refer to other titles for rates and other information on savings.
Passbook Savings Account
This account is designed as a basic savings account.
The interest rate and annual percentage yield may change at the Bank's discretion at any time.
A minimum deposit of $100.00 is required to open this account.
Interest begins to accrue on the business day you deposit non-cash items (e.g., checks). Interest is compounded quarterly and credited on the last day of each calendar quarter. If you close your account before interest is credited, you will not receive the accrued interest.
We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.
If your minimum balance falls below $100.00 during any day of the month, a $2.00 service charge will be applied to your account monthly. Minors and students may apply for exemption from service charges.
Other Service Charges: Service charges applicable to all accounts are set forth as General Charges.
Certificates of Deposit (CDs)
For bank customers desiring to "lock in" a fixed interest rate on a fixed amount of money in a secure investment instrument, PennSecurity's Certificates of Deposit are just the thing.
Furthermore, Penn Security's CDs offer a full range of options in regard to maturity dates and payment options. You can pick your maturity date if you choose daily interest computation, or, if you want interest computed monthly, the certificate will mature on the monthly anniversary date in the last month of the certificate.
Essentially the same amount of interest over the same period of time will be paid regardless of whether daily interest or monthly interest is used.
Interest payment options include adding to the principal balance of the CD, crediting any account of yours in the Bank, or mailing a check to you.
Interest payments may be made monthly, quarterly, semi-annually or annually.
Penalty for early Withdrawal:
There is a substantial penalty for early withdrawal of any certificate of deposit. A disclosure form detailing the minimum penalty will be given to you at the time you purchase the certificate.
FREE Small Business Checking
This is the perfect business checking account for your small or in-home business. The first 350 transaction items per month are free and there is no minimum balance requirement. For each transaction in excess of 350 per month, a nominal fee of $.30 per item is assessed. Checks will not be returned with the statement. $25.00 deposit required.
Commercial High Activity Checking
Commercial High Activity Checking Accounts are for commercial customers whose monthly activity is higher than the ordinary customer. Since it costs more to return checks to our customers, this option is priced higher than if you chose not to. A schedule of rates and charges for Commercial or High Activity Checking Accounts follows:
1. Earnings Credit: Earnings credit is computed on the average available balance at a rate equal to 90 percent of the average of the 91 day Treasury Bill Auction rates for the prior three months, less the premium rate for FDIC Insurance.
2. Tentative Charges for Activity:
Statement Preparation...
$ 6.00
$ 8.00
3. Monthly Service Charges: If the total tentative charges for activity is equal to or less than the earnings credit for the month, there will be no service charge.
If the total tentative charges for activity exceeds the earnings credit, a service charge will be made on the difference between the two.
4. Other Service Charges: Refer to "General Service Charges" on all transaction accounts for a list of other service charges.
5. Minimum Balance Requirements: You must deposit $50.00 to open this account.
Commercial High Activity N.O.W. Accounts
You must deposit $50.00 to open this account. Interest for your account will be compounded monthly and credited to your account monthly. If you close your account before interest is credited, you will not receive the accrued interest.
We use the daily balance method to calculate the interest on your account, which applies a daily periodic rate to the full amount of available principal in the account each day.
1. Earnings Credit: We use the average daily method to calculate the earnings credit at an interest rate equal to 90% of the average auction rate for the three (3) month Treasury Bills for the prior three (3) months less the premium rate for FDIC Insurance minus the interest rate paid on the N.O.W. Account.
The average daily balance is determined by adding the full amount of available principal in the account for each day of the period and dividing that figure by the number of days in the period. Funds are available no later than the business day we receive credit for the deposit of non-cash items (e.g., checks).
2. Accrual of Interest on Deposits other than Cash: Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (e.g., checks).
3. Fees: The following may be assessed on your account. These fees are tentative charges:
Statement Prep.....
$6.00
$8.00
4. Monthly Service Charges: If the total tentative charges for activity is equal to or less than the earnings credit less interest credited, there will be no service charges. If the total tentative charges for activity exceeds the earnings credit less interest credited, a service charge will be made of the difference between the two.
5. Rate Information: Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account at any time.
6. Other Service Charges: See General Charges.
Money Market Accounts
Standard Money Market Account
Standard Money Market Accounts are essentially accounts similar in purpose to savings accounts, but paying a market rate of interest. They are statement type accounts, not passbook accounts. The characteristics of these accounts are as follows:
1. Minimum Initial Deposit: There is a minimum initial deposit of $2,500.
2. Check Writing Privileges: Federal regulations limit check writing on this type of account to no more than three per month.
3. Interest and Monthly Service Charge: If your average monthly ledger balance equals or exceeds $2,500.00, interest will be computed daily at a variable rate set by Penn Security from time to time based on current market conditions, rates being paid on broker sponsored mutual funds, and other competitive factors. Interest will be calculated on the current available balance and will be credited monthly.
Monthly Service Charge:
If the average monthly ledger balance is less than $2,500.00, interest rate paid will be a variable daily rate set by Penn Security Bank.
4. Unlimited Access Privileges: There is no limit on the number or amount of deposits, withdrawals, or transfers through Penn Security Bank tellers, by messenger, mail, or through home banking.
5. Limited Access Privileges: Access to your account by the following methods is limited to no more than six in any combination of the following:
A. Pre-authorized transfers from this account.
B. Automatic transfers to other accounts at Penn Security.
C. Telephone transfers to or from another Penn Security account.
D. Wire transfers from this account.
Only three (3) may be payments by check to third parties.
6. Other Service Charges: Refer to "General Charges on transaction accounts" for other service charges on this account. (See General Charges).
7. Non-Return of Checks: Cancelled checks will not be returned with a monthly statement. Copies of checks will be provided on request at a charge of $1.00 per copy (up to 5 checks annually without charge).
High Yield Money Market Savings Account
This account is designed to achieve higher earnings for those who have more to save.
You must deposit $25,000 to open this account. Interest is compounded monthly and credited to your account monthly. If you close your account before the interest is credited, you will not receive the accrued interest.
1. Minimum Balance Requirements - A minimum balance fee of $8.00 will be imposed every statement period if the average daily balance in your account falls below $2,500 any day of the month.
If you maintain a passbook savings account with our Bank with a minimum daily average balance in your account exceeding $5,000, there will be no minimum balance fee on the account.
2. Rate Information - If your daily balance is $25,000 or more, the interest rate paid will be set by the Penn Security Bank and Trust Company. If your daily balance is $3,500 or more, but less than $25,000, the interest rate paid will be set by Penn Security Bank. If your daily balance is less than $3,500, the interest rate paid will be set by Penn Security Bank. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate for your account at any time.
3. Transaction Limitations - You may make unlimited withdrawals, deposits, or transfers made by mail, messenger, automated teller machines, home banking or at any Penn Security Bank teller.
4. Balance Computation Method - We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the full amount of available principal in the account each day. We use the average daily balance method to calculate the minimum daily balance required in your account in order to avoid service charges.
Other Service Charges: Service Charges applicable to all Money Market Accounts are set forth as General Charges (See General Charges.)
Safe Deposit Boxes
Safe Deposit Boxes are available to rent at all of the Bank's offices.
Rents which are payable in advance are as follows:
|
Box Size (in inches) |
Annual Rental |
|
|
2 x 5 x 22..... |
$18.00 |
|
|
3 x 5 x 22..... |
$25.00 |
|
|
5 x 5 x 22..... |
$30.00 |
|
|
3 x 10 x 22..... |
$40.00 |
|
|
5 x 10 x 22..... |
$50.00 |
|
|
10 x 10 x 22..... |
$100.00 |
These charges have been in effect since 1/1/98.
Other charges are made for loss of keys and drilling of boxes.
Club Accounts
The Automatic Club Account has been designed to replace the existing All-Purpose Clubs and Christmas Clubs that use coupon booklets.
This club account provides for the automatic charging of your checking or savings account weekly for payments of any amount, depending on the class of club you select. Your account will be charged for payments on the 1st business day of each week.
Call for the current rate.
Checks for the balance in the club account, plus interest, will be mailed annually on our normal mailing date.
No interest will be paid on Automatic Club Accounts that are closed early.
IRA (Regular)
Individual Retirement Accounts provide a means by which an individual may save for retirement. Contributions to the Regular IRA may be tax deductible and interest on the IRA is not taxable until withdrawn. The annual contribution limit for the IRA is currently $4,000. If an individual is age 50 or older this year, they may contribute up to $5,000. Individuals must have earned income to be eligible to make a contribution.
A separate spousal IRA may be established for a non-employed spouse. In that instance, the total contribution to both the regular IRA and spousal IRA may not exceed $8,000 ($10,000 if both are age 50 or older) with the maximum contribution to either IRA limited to $4,000 ($5,000 if age 50 or older).
Withdrawals from the IRA may commence when the owner of the IRA reaches the age of 59 1/2 and must commence when the owner of the account reaches the age of 70 1/2.
The funds in the IRA are taxed as they are withdrawn. Funds may be withdrawn from the IRA prior to the time the owner reaches the age of 59 1/2, but a penalty is imposed by the Internal Revenue code of 10 percent of the amount of the withdrawal unless the taxpayer is disabled at the time of the withdrawal.
Because the pre-tax contributions and entire income thereon on a Regular IRA are sheltered from taxes, retirement savings accumulate at a more rapid pace than would be possible if the taxes were paid up front on the contributions and earnings thereon.
IRAs are now available to employed people, including self-employed people regardless of whether or not they are already covered under a pension or other retirement plan.
Simplified employee pension plans are available which provide for employer contributions to IRAs. The maximum employer contribution to an individual IRA under a SEP Plan is now $44,000.
Other details on IRAs are available at any of our branches.
Conversion to Roth IRA
Regular IRAs may be able to be converted to Roth IRAs depending on the owner's financial circumstances. At the time of conversion income taxes must be paid on the portion of the account which represents pre-tax contributions and the entire earnings on the account. After conversion, no income tax is payable on any withdrawals.
Roth IRA
Roth IRAs are IRAs resulting from contributions of after-tax dollars. Withdrawals from Roth IRAs are income tax free. To be eligible to contribute to a Roth IRA, the individual and their spouse must satisfy certain rules regarding taxable income.
IRA Annual Statements - Two annual statements will be produced and mailed to the customer. The first statement will be produced at year end and will show in detail all activity in the customer's IRA including all contributions, interest, purchases and redemption of certificates, and distributions.
The second statement will be produced in Spring and will summarize the transactions during the prior year as well as transactions in the current year effecting tax matters for the prior year.
IRA Distributions - Distributions can be taken in a lump sum, or in monthly, quarterly, semi-annual or annual installments, by crediting to any account the customer carries with the Bank, or by check mailed to the customer.
Certificate Payment and Maturity Options - IRA Certificate interest may be paid by adding it to the original amount of the certificate or by crediting it to the balance in the variable rate account.
IRA Certificates can mature on any bank business day
IRA Rates and Charges - Interest on variable rate IRAs is computed daily and paid monthly by credit to the variable rate account.
Interest on fixed rate certificates of deposit is fixed for the term of the certificate at the time it is purchased. The rates vary from time to time and are based upon general market conditions, competitive factors, and the Bank's possible uses of the funds over the particular term selected.
Types of IRAs
Penn Security Investments offers both fixed and variable rate IRAs. The variable rate IRA is much like a money market account and amounts can be withdrawn from that account at any time without any penalty imposed by the Bank (but I.R.S. may impose a penalty if amounts are withdrawn before the owner reaches the age of 59 1/2 and they are not rolled over into another IRA within 60 days).
Fixed rate IRAs are much the same as certificates of deposit except the customer receives only a confirmation, not the certificate.
Travelers Checks
Penn Security Bank sells American Express Travelers Checks, travelers checks recognized and accepted around the world.
Penn Security charges one percent of the face value amount as a fee for their issuance.
Travelers checks can be purchased in denominations of 20, 50, and 100 dollars. They never become staledated, which means they can be used anytime.
Lost or stolen checks are refunded immediately and without charge.
Many people today find the convenience and worldwide acceptability of credit/debit cards has reduced the necessity of using travelers checks.
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© 2007 Penn Security Bank & Trust Company
A Subsidiary of Penseco Financial Services Corporation
Visit us at any one of our branch offices
or call us toll free: 800.327.0394
