Account Disclosures for Personal Accounts
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Account Disclosures for Personal Accounts onewestbank.com Important information about Funds Availability The Board of Governors of the Federal Reserve have authorized an inflation adjustment to the $5,000 threshold affecting the availability of funds you deposit with us by check, including but not limited to (1) certain deposits to new accounts, and (2) large check deposits. This threshold will be increased from $5,000 to $5,525. What this change means for you is that extended check holds that previously applied to the portion of a day’s deposits in excess of $5,000 will instead apply to amounts in excess of $5,525. There are other impacts, as well, and we encourage you to review the specific revisions, below. This change affects deposits made on or after July 1, 2020. Effective July 1, 2020, this addendum replaces the following sections of our Funds Availability Policy, documented in the OneWest Bank Account Disclosures for Personal Accounts: • The section entitled “Longer Delays May Apply” on pages 9 -10 • The section entitled “Special Rules for New Accounts” on page 10 All other sections of our Funds Availability Policy remain unchanged. Longer Delays May Apply In some cases, we will not make all of the funds that you deposit by check available to you the next business day after we receive your deposit. Funds you deposit by check may be delayed for a longer period of time under certain circumstances, including the following: • We believe a check you deposit will not be paid. • You deposit checks totaling more than $5,525 on any one day. • You redeposit a check that has been returned unpaid. • You have overdrawn your account repeatedly in the last six months. • There is an emergency, such as failure of computer or communications equipment. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the date of your deposit. If we decide to take this action after you have left the premises, we will mail you the notice by the following business day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will also be available. Special Rules for New Accounts If you are a new client, the following special rules apply during the first 30 calendar days that your account is open. Funds from cash and wire transfers to your account will be available on the day we receive the deposit. The first $5,525 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,525 will be available on the seventh business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,525 will not be available until the second (2nd) business day after the day of your deposit. Funds from all other check deposits will be available on the seventh business day after the day of your deposit. © 2020 CIT Group Inc. All Rights Reserved. 4024 06/20 91892 OWB Personal Booklet Insert Rev1.indd 1 5/29/20 1:13 PM Important Information about Early Withdrawal Penalties on CDs OneWest Bank, a division of CIT Bank, N.A. may impose an early withdrawal penalty if we permit an early withdrawal of principal from a Certificate of Deposit account (CD). The amount of the penalty varies based on the term of the CD. Currently, the early withdrawal penalty applicable to CDs with terms greater than 2 years is as follows: The GREATER of: (1) 2% of the amount withdrawn; or (2) a Market Adjustment (see below). The Market Adjustment estimates the interest cost that we would incur if we were to replace your early with- drawal or closed CD with another “replacement CD” at a higher cost. The replacement CD would be of a term that is closest to but not greater than the remaining term of your original CD. To calculate the Market Adjustment, we take the difference between the (lower) interest rate on your original CD and the (higher) interest rate on the replacement CD and multiply this difference by the amount being withdrawn, multiplied by the number of years (or partial year) remaining on your original CD. If the interest rate on the replacement CD is less than or equal to the interest rate on your original CD there is no applicable Market Adjustment. If we are offering more than one APY to the general public for a replacement CD with a term that is closest to but not greater than the remaining term of your original CD, at the time of your early withdrawal or early CD closure, we will use the lowest APY we are offering the general public for a replacement CD to calculate any applicable Market Adjustment. The calculation may be expressed as follows: Amount Remaining Term in Days (Replacement CD Interest Being X _______________________ X Rate minus Existing Withdrawn 365 CD Interest Rate) Effective September 1, 2020, the penalty applicable to CDs with terms greater than 2 years will simply be 2% of the amount withdrawn. This affects both new and existing CDs with terms greater than 2 years. Accordingly, the following addendum replaces the section entitled “Early Withdrawal Penalties,” appearing on pages 37 and 38 of the OneWest Bank Account Disclosures for Personal Accounts: Early Withdrawal Penalties CD customers agree to keep their funds on deposit for a fixed period of time. Unless otherwise provided, partial withdrawals are not permitted. If we permit an early withdrawal of principal, we may impose an early withdrawal penalty on the amount withdrawn as follows: CD Term Penalty Amount 90 Days through 365 Days 90 days’ simple interest, whether earned or not 366 Days through 18 Months 180 days’ simple interest, whether earned or not Greater than 18 Months through 2 Years 270 days’ simple interest, whether earned or not Greater than 2 Years 2% of the amount withdrawn All withdrawals, including withdrawals of available interest and any early withdrawal penalties, will reduce earnings. Any withdrawals which reduce the account balance below the minimum balance requirement will require that the account be closed and shall be subject to the appropriate early withdrawal penalty. © 2020 CIT Group Inc. All Rights Reserved. 4024 06/20 91892 OWB Personal Booklet Insert R2.indd 2 6/15/20 3:54 PM Important information about Savings and Money Market Accounts In recognition of our customers’ needs during this challenging time, beginning April 23, 2020, the limitation on certain transfers and withdrawals from savings and money market accounts, outlined on page 37 of the Account Disclosures for Personal Accounts and page 34 of the Account Disclosures for Business Accounts, has been temporarily suspended. Until further notice, customers may conduct unlimited transfers and withdrawals on their savings and money market accounts. We won’t charge a fee, send a letter or notice, or take any other action in response to exceeding the customary six-transfer/withdrawal limit. ©2020 CIT Group Inc. All rights reserved. 4011-05/20 91839 OWB Disclosure Addendum R2.indd 1 5/5/20 2:54 PM I. DEPOSIT ACCOUNT AGREEMENT WELCOME TO ONEWEST BANK Banking with OneWest Bank . 1 Additional Services to Consider. 1 Ways to Access your Account . 1 YOUR AGREEMENT WITH US Our Agreement . 2 Amendments and Changes in Account Terms . 2 FDIC Insurance . 2 Governing Law . 2 Consent to Receive Telephone Calls/Texts & SMS Messages . 3 INFORMATION ABOUT YOU AND YOUR ACCOUNTS WITH US Customer Identification Program . 3 Credit Verification . 3 Telephone and E-Mail Monitoring . 3 ACCOUNT OWNERSHIP Some General Information . 3 Transfer/Assignment . 4 Personal Accounts in General . 4 Payable-on-Death and Totten Trust Accounts . 4 GENERAL INFORMATION ABOUT TYPES OF ACCOUNTS Checking, Savings and Money Market Products Offered . 4 Checking Subaccounts . 4 Certificate of Deposit Products Offered . 5 PAYMENT OF OVERDRAFTS Maintaining an Available Balance . 5 Payment of Overdrafts . 5 Fees Associated with Overdrafts . 5 Overdraft Protection . 5 ABOUT OUR POSTING ORDER General Posting Order . 6 Credit and Debit Categories for Posting . 6 Determination of Posting Order . 6 Posting Order and Overdraft Fees . 6 DEPOSITS AND COLLECTIONS Accepting Items for Deposit . 6 Verification and Collection . 7 Items Sent for Collection . 7 Lost Items . 7 Remotely Created Checks and Demand Drafts . 7 Delivery of Deposits and Verification . 8 Endorsements . 8 Identifying Your Account for Deposits. 8 Correction of Deposit Errors . 8 Returned Items/Transactions . 9 Depositing or Cashing Substitute Checks . 9 FUNDS AVAILABILITY POLICY Your Ability to Withdraw Funds . 9 Longer Delays May Apply . 9 Special Rules for New Accounts . 10 Deposits Made Via Automated Clearing House Transactions . 10 Holds on Other Funds . 10 Foreign Items . 10 WITHDRAWALS AND CHECK CASHING Cashing Checks Payable to You . 11 Cashing Your Checks Payable to Others . 11 Check Stock . 11 Converting Checks to Electronic Debits . 11 Examining Checks . 11 Voluntary Disclosure of Your Account Number . 12 Large Cash Withdrawals . 12 Paying Checks Drawn on Your Account . 12 Post-Dated Checks . 12 Missing Date or Stale-Dated Checks . 12 Substitute Checks and Image Replacement Copies . 13 Returning Unpaid Items to You . 13 SUBSTITUTE CHECKS AND YOUR RIGHTS What is a Substitute Check? .