TERMS AND CONDITIONS OF YOUR ACCOUNT

Your Ability to Withdraw Funds
This policy statement applies to all deposit accounts.

Our policy is to delay the availability of funds from your check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written. Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

Determining the Availability of a Deposit
The length of the delay is counted in business days from the day of your deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. If you make a deposit before closing on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after closing or on a day we are not open, we will consider that the deposit was made on the next business day we are open. The length of the delay varies depending on the type of deposit and is explained below.

If you make a deposit at an ATM before 2:00 p.m. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit at an ATM after 2:00 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Same-Day Availability
Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from the following deposits are also available on the business day we receive your deposit:

• U.S. Treasury checks
• Wire Transfers
• Checks drawn on Lenox Savings Bank
• Cash
• State and local government checks, Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders (if these items are payable to you)

If you do not make your deposit in person to one of our employees (for example, if you mail the deposit), funds from these deposits will be available on the second business day after the day we receive your deposit.

OTHER CHECK DEPOSITS

The delay for other check deposits depends on whether the check is a local check or a non-local check. Some checks will be marked "payable through" a particular financial institution. You will check the address of the "payable through" institution to determine if it is a local or non-local check.

Local checks.
The first $100.00 from a deposit of local checks will be available the same day as the deposit. The remaining funds will be available the second business day after the day of deposit. For example, if you deposit a local check of $700.00 on a Monday, $100.00 is available on Monday. The remaining $600.00 is available on Wednesday.

Non-Local checks.
The first $100.00 from a deposit of non-local checks will be available the same day as the deposit. The remaining funds will be available the fifth business day after the day of deposit. For example, if your deposit a non-local check of $700.00 on a Monday, $100.00 is available on Monday. The remaining $600.00 is available on the Monday of the following week.

Local and non-local checks.
If you deposit both categories of checks, $100.00 from the checks will be available the same day as the day of your deposit, not $100.00 from each category of check.

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Longer Delays May Apply
Funds you deposit by check may be delayed for a longer period under the following circumstances:

• You deposits checks totaling more than $5,000 on any one day.
• You redeposit a check that that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• 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 eleventh business day after the day of your deposit.

SPECIAL RULES FOR NEW ACCOUNTS

If you are a new customer, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a days total deposits of cashiers, 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 (and you may have to use a special deposit slip). The excess over $5,000 will be available on the ninth 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 $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the eleventh business day after the day of your deposit.

TRUTH-IN-SAVINGS DISCLOSURE

BASIC CHECKING ACCOUNT

• Minimum balance to open the accounts- You must deposit $50.00 to open this account.
• Minimum balance to avoid the imposition of fees- If your balance falls below $250.00 on any day in the monthly statement cycle, we will impose a maintenance fee of $6.00 once during the statement cycle.
• First order of checks FREE
• Image statements, no checks returned
• Rate information- this account is non-interest bearing.

NOW CHECKING ACCOUNT

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest rate on your account.
• Compounding and crediting frequency- interest will be compounded every month. Interest will be credited to your account every month.
• Minimum balance to open the account- you must deposit $50.00 to open this account.
• Minimum balance to avoid the imposition of fees- If your balance falls below $50.00 on any day in the monthly statement cycle, we will impose a maintenance fee of $6.00 once during the statement cycle.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a minimum balance of $50.00 in the account each day to obtain the disclosed annual percentage yield.
• Daily balance computation method- We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principle in the account each day.
• Accrual of interest on non-cash deposits- interest begins to accrue on the business day you deposit non-cash items (for example, checks).

SENIOR ADVANTAGE CHECKING ACCOUNT

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest on your account.
• Compounding and crediting frequency- interest will be compounded every month. Interest will be credited to your account every month.
• Minimum balance to open the account- No minimum balance requirement.
• Minimum balance to avoid imposition of fees- No monthly maintenance fee.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a minimum balance of $50.00 in the account each day to obtain the disclosed annual percentage yield.
• Daily balance computation method-Interest on your account. This method applies a daily periodic rate to the principle in the account each day.
• Accrual of interest on your account on non-cash deposits- Interest begins to accrue on the business day you deposit non-cash items (for example, checks).

MONEY MARKET ACCOUNTS

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest rate on your account.
• Compounding and crediting frequency- Interest will be compounded every month . Interest will be credited to your account every month.
• Minimum balance to open the account- You must deposit $2,500.00 to open this account.
• Minimum balance to avoid imposition of fees- If your balance falls below $2500.00 on any day in the monthly statement cycle, we will impose a maintenance fee of $3.00 once during the statement cycle. Daily balance computation method- We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principle in the account each day.
• Accrual of Interest on non-cash deposits- Interest begins to accrue on the business day you deposit non-cash items (for example, checks).
• Transaction limitations- Transfers from a Money Market account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement cycle with no more than three by check or similar order to third parties.

STATEMENT SAVINGS ACCOUNT

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest rate on your account.
• Compounding and crediting frequency- Interest will be compounded every quarter. Interest will be credited to your account every quarter.
• Minimum balance to open an account- You must deposit $50.00 to open this account.
• Minimum balance to avoid the imposition of fees- If your balance falls below $50.00 on any day in the month, we will impose a maintenance fee of $3.00 once during the statement cycle.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a balance of $50.00 in the account each day to obtain the disclosed annual percentage yield.
• Daily balance computation method- 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.
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit cash and non-cash items (for example, checks).

JUNIOR SAVERS CLUB

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest rate on your account.
• Compounding and crediting frequency- Interest will be compounded every quarter. Interest will be credited to your account every quarter.
• Minimum balance to open an account- You must deposit $50.00 to open this account.
• Minimum balance to avoid the imposition of fees- No monthly maintenance fee. **Junior Savers Club ONLY.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a balance of $50.00 in the account each day to obtain the disclosed annual percentage yield.
• Daily balance computation method- 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.
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit cash and non-cash items (for example, checks).

MONEY MARKET SAVINGS ACCOUNT

• Rate information- Your interest rate and annual percentage yield is based on a tiered account structure and may change at any time.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest rate on your account.
• Compounding and crediting frequency- Interest will be compounded every month. Interest will be credited to your account every quarter.
• Minimum balance to open the account- You must deposit $500.00 to open this account.
• Minimum balance to avoid the imposition of fees- If your balance falls below $500.00 on any day in the month, we will impose a maintenance fee of $3.00 once during the statement cycle.
• Daily balance computation method- We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principle in the account each day.
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit cash and non-cash items (for example, cash).
• Transaction limitations- Transfers from a Money Market account to another account or to third parties by preauthorized, automatic, telephone, or online banking transfer are limited to six per statement cycle.

MINOR STATEMENT SAVINGS ACCOUNT

• Rate information- Your interest rate and annual percentage yield may change.
• Frequency of rate changes- We may change the interest rate on your account at any time.
• Determination of rate- At our discretion, we may change the interest on your account.
• Compounding and crediting frequency- Interest will be compounded every quarter. Interest will be credited to your account every quarter unless monthly interest payments are requested.
• Minimum balance to open the account- You must deposit $50.00 to open this account.
• Minimum balance to avoid the imposition of fees- If your balance falls below $50.00 on any day during the statement cycle, we will impose a maintenance fee of $3.00 once during the statement cycle.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a balance of $50.00 in the account each day to obtain the disclosed annual percentage yield.
• Daily balance computation method- We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principle in the account each day.
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit cash and non-cash items (for example, checks).

CERTIFICATE OF DEPOSIT

• Rate information- Please see a current interest rate sheet for rate information. You will be paid this rate until maturity.
• Compounding frequency- Interest will be compounded every month.
• Crediting frequency- Interest will be credited to your account on the last day of the month unless a different payment option is requested.
• Minimum balance to open the account- You must deposit $2500.00 for terms less than six months, $1000.00 for terms six months to one year, and $500.00 for terms greater than one year.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a minimum balance of $2500.00 in a 3-Month or 6-Month Certificate of Deposit in the account each day to obtain the annual percentage yield.
• Minimum balance to obtain the annual percentage yield disclosed- You must maintain a minimum balance of $2500.00 in a 3-month, $1000.00 in a 6-month, and $500.00 for terms greater than one year to obtain the disclosed annual percentage yield.
• Daily balance computation method- 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.
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit cash and non-cash items (for example, checks).
• Transaction Limitations- You may not make any deposits into your account before maturity. You may make withdrawals of interest, after it is credited from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.
• Early withdrawal penalties- A penalty may be imposed for withdrawals before maturity. If the term is 1 year or less, a penalty of 3 months interest will be assessed. If the term is greater than 1 year, a penalty of 6 months interest is assessed.
• Withdrawal of interest prior to maturity- The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.
• Automatically renewable time account- This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below) or we receive written notice from you within any grace period mentioned below. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will accrue at the rate in effect on the maturity date.

Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new time deposits on the maturity date, which have the same term, minimum balance (if any) and other features as the original time deposit.

You will have (7) seven calendar days after maturity to withdraw the funds without penalty.

BUSINESS ACCOUNTS

SIMPLE BUSINESS CHECKING

• Rate information- This account is a non-interest bearing account.
  
• Minimum balance to open the account- You must deposit $2500.00 to open this account.
  
• Account features- This account is designed for small businesses with less than 100 transactions a month. There are never any fees for deposits.
  

TOTAL BUSINESS CHECKING

• Designed for non-profit organizations.
• Rate information- This account is a non-interest bearing account.
  
• Minimum balance to open the account- You must deposit $100.00 to open this account.
  
• Account features- Accommodates a high number of transactions. Fees are based on the balance of the account and number of transactions done.
  
  • For balances of $10,000.00 and over there is no monthly maintenance fee and includes 250 FREE transactions. Any transaction over 250 will be charged $.10 a transaction
  • For balances of $3,000.00 or more there is a $4.50 monthly maintenance fee and includes 150 FREE transactions. Any transaction over 150 will be charged $.20 a transaction.
  • For balances of $2,999.00 and under there is a $9.50 monthly maintenance fee and includes 50 FREE transactions. Any transaction over 50 will be charged $.30 a transaction.

BUSINESS INTEREST CHECKING

• Rate information- Your interest rate and annual percentage yield may change.
  
• Frequency of rate changes- We may change the interest rate on your account at any time.
  
• Determination of rate- At our discretion, we may change the interest rate on your account.
  
• Compounding and crediting frequency- Interest will be compounded every month. Interest will be credited to your account every month.
  
• Minimum balance to open the account- You must deposit $500.00 to open this account.
  
• Minimum balance to avoid the imposition of fees- If your balance falls below $500.00 on any day in the month, we will impose a maintenance fee of $6.00 once during the statement cycle.
  
• Daily balance computation method- We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principle in the account each day.
  
• Accrual of interest on non-cash deposits- Interest begins to accrue on the business day you deposit non-cash items (for example, cash).
  

Online Banking Services

Bill Payment
The most convenient way to manage and pay bills for only $5.95 a month.

Telephone Banking
Access your account information with a simple telephone call, anytime absolutely FREE!

Automated Teller Machines (ATM)
Cash when you need it; open 24 hours a day. You have the option of using Foundation Bank's 4 great ATM locations or any US Bank ATM FREE!

Place Orders and Make Updates

• Update your personal information. Change address, amil address, and change your password through our Internet Banking Email service.
• Place orders or reorder checks, order a copy of a check.
• Place stop payments.
• Contact Customer Service. Ask questions or report a problem.