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- AVERAGE BALANCE - The daily average balance of your account.
- FLOAT - When "foreign checks" (checks not drawn on our bank) are deposited, time is needed to collect these checks before the money is available for withdrawal.
The average time needed for collections is presently two (2) days after the date of deposit.
- AVERAGE FLOAT - The daily average of deposits in the process of collection.
- RESERVE - All banks are required to maintain non-interest bearing reserves against their demand deposits (customer checking accounts).
- CREDIT - A credit is used to offset the basic service charge. The rate (presently 1.00% per annum) is calculated on the average available balance. The rate is subject to change.
- BASIC SERVICE CHARGE - This is the charge assessed for handling your account if your credit is not sufficient to pay the entire service charge assessed.
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Items used to compute Total Monthly Charges |
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Checks deposited not drawn on us $.08 each
Checks written on the account $.10 each
Checks deposited returned unpaid $4.50 each
Monthly account maintenance fee $3.00 each |
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Interest is not paid on this account. |
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The Monthly Service Charge is calculated by comparing the total monthly Credit against the total monthly Charges.
The difference may or may not result in a charge to the customer.
If the total Credit exceeds the total Charges, then no service fee is assessed for the month. Conversely, if the total Charges are greater than the total Credit, then the monthly service charge equals the difference between the two figures.
(Please refer to the following examples for a further illustration of our service charge calculation.) |
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Example #1: This is an illustration of a typical Business Checking Account where the monthly credit is greater than the total charges to the account.
No Service Charge would be assessed. |
Average Balance |
$50,000 |
Less: Average Float |
$3,000 |
Equals: Average Collected Balance |
$47,000 |
Less: Reserve (10%) |
$4,700 |
Equals: Average Available Balance |
$42,300 |
TOTAL CREDIT = AVERAGE AVAILABLE BALANCE
($42,300) CALCULATED BY THE CREDIT
PERCENTAGE (PRESENTLY 2.00%) = $70.50 |
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Charges |
Items |
Cost |
Total |
Foreign Checks Dep. |
500 |
$.08 ea. |
$40 |
Plus: Checks On Us |
150 |
$.10 ea. |
$15 |
Plus: Mo. Acct. Maint. Fee |
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$5 |
$5 |
Equals: TOTAL CHARGES |
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$60 |
NO SERVICE CHARGE WOULD BE ASSESSED.
MONTHLY CREDIT ($70.50) IS GREATER THAN TOTAL CHARGES ($60.00) |
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Example #2: This is an illustration of a typical Business Checking Account where the total charges to the account exceed the monthly credit. The difference between the two figures is the Service Charge that would be assessed to the account. |
Average Balance |
$10,000 |
Less: Average Float |
$3,000 |
Equals: Average Collected Balance |
$7,000 |
Less: Reserve (10%) |
$700 |
Equals: Average Available Balance |
$6,300 |
TOTAL CREDIT = AVERAGE AVAILABLE BALANCE
($6,300) CALCULATED BY THE CREDIT
PERCENTAGE (PRESENTLY 2.00%) = $10.50 |
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Charges |
Items |
Cost |
Total |
Foreign Checks Dep. |
200 |
$.08 ea. |
$16 |
Plus: Checks On Us |
50 |
$.10 ea. |
$5 |
Plus: Mo. Acct. Maint. Fee |
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$5 |
$5 |
Equals: TOTAL CHARGES |
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$26 |
$15.50 SERVICE CHARGE ASSESSED.
TOTAL CHARGES ($33.00) GREATER THAN MONTHLY CREDIT ($10.50) |
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See our Fee Schedule for our other service fees associated with this account.
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We also offer the following Commercial Banking Services:
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Letter of Credit
Accounts Receivable Financing
Real Estate Financing
Federal Tax Deposits
Bank-by-Mail
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