Your savings insured to
at least $100,000 by
the
National Credit Union Administration, a U.S. Government Agency.
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Section contents:
An Income Growth Account is a special term account on
which you have the option of changing the dividend rate after the first
anniversary date and once each year after that until maturity. You have the
guarantee of the initial dividend rate, but if the rate on this account
type goes up, you have an opportunity to get that higher rate, and to
add additional funds to the account, too. The minimum balance to
open the account is $5,000, with a dividend bonus on deposit increments of
$5,000 up to $40,000. The term is your choice of 2, 3, 4, or 5 years. |
Eligibility
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Any Northrop Grumman Federal Credit Union member. |
Rates
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A 0.05% bonus dividend will be added to your rate for
each $5,000 over the minimum up to $40,000 in the opening deposit. That
amounts to a potential maximum rate bonus of 0.35%. There is no maximum on
the amount you can deposit.
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Summary
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- Term Account for 2, 3, 4, or 5 years
- Option to change the dividend rate once during
each year after the first anniversary date
- $5,000 minimum initial deposit
- Bonus dividend for bigger initial deposit up to $40,000
- Option to deposit more funds into account once a year after the first anniversary date
- Dividends may be credited monthly to the Income Growth Account, to another NGFCU account, or mailed to you
- Subject to penalty for early withdrawal
For more details, including the penalty for early withdrawal and the
formula for determining rates, see Terms and Conditions
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Frequently Asked Questions
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Q: Why should I choose this account over a different term account?
A: Unlike the Regular Term Account, the Income Growth Account offers
you the flexibility to take advantage of higher rates when they are
available.
Q: When is the Income Growth Account a better choice?
A: Experience has taught that the dividend rate on this account is
often higher during periods of rapid interest rate decline, such as when
the Federal Reserve Board is making cuts in the discount rate.
Q: What if I choose a 5-year term then need my money after only 3 years?
A: You can get the money, but there will be a substantial penalty for
early withdrawal.
Q: Should I be worried that my assets are not liquid enough in an Income Growth Account?
A: Liquidity is important, and that's why we offer a choice of terms
and amounts. You may also want to keep money in your more liquid accounts,
such as your savings and money market accounts.
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