This document, as it may be amended or supplemented by us from time to time, constitutes an agreement between you and American Express Bank, FSB. It establishes the terms and conditions governing the deposit products you have obtained from American Express Bank, FSB. Please read this agreement carefully. By clicking the I AGREE button on-line or by otherwise opening, using or continuing to have your account with us, you agree to the terms of this agreement.
If you have any questions, please call us at 1-800-446-6307. This agreement and your deposit account(s) are subject to applicable Federal laws and laws of the State of Utah. If any provision of this agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. As used in this document the words “we,” “our,” and “us” mean American Express Bank, FSB. The words “you” and “your” mean the account holder(s) and anyone else with the authority to deposit, withdraw or exercise control over the funds in the account. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.
Identifying You. To help fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you apply for an account, we will ask you for your name, address, date of birth, and other information that will allow us to identify you. To open an account with us, you must be at least 18 years of age, a U.S. citizen or a resident alien with a valid Social Security Number or other Taxpayer Identification Number and have a residential address in the United States.
Consumer Reporting Agencies. By submitting an application to open your account, you authorize us to obtain information about you from time to time from consumer reporting agencies, from our subsidiaries and affiliates, and other third parties for the purpose of considering your account application or any other legitimate purpose. We may also report the status of or the closure of your account to consumer reporting agencies, our subsidiaries and affiliates, and other third parties.
Taxpayer ID Numbers (TIN) / Backup Withholding. Federal law requires us to have a correct Taxpayer Identification Number (TIN) on every account, and the Internal Revenue Service (IRS) requires you to certify to us whether you are subject to backup withholding. If you are subject to backup withholding or if the IRS notifies us that we do not have a correct TIN for your account, we may be required to withhold a percentage of interest paid as provided in current IRS regulations (backup withholding) and we may close the account. Amounts withheld are reported to the IRS as federal income tax withheld, and will be reflected on your year-end 1099-INT Interest Income Statement. TINs may be in one of the following forms: (a) your Social Security Number (SSN) if the account is in your name and you are either a U.S. citizen, permanent resident, or otherwise eligible to receive a SSN from the Social Security Administration; or (b) an Individual Taxpayer Identification Number (ITIN) if you are not eligible to receive a SSN from the Social Security Administration.
Transferring Account Ownership. Accounts are not negotiable and not transferable, except on our books. We are not required to accept any assignment of an account. We may require that changes of ownership of an account be made by closing the account and opening a new account in the name of the new owner of the account. No pledging of an account as security is valid without our approval, and any such pledge is subject to our right of set-off and security interests.
Disputed Ownership of an Account. If we receive any conflicting claims to funds that are in an account and we cannot determine the rights of the claimant to any such funds, we may, in our sole discretion: (a) restrict the account and deny access to such funds; (b) hold the funds without liability to anyone, pending resolution of any claims over the funds to our satisfaction; (c) close the account and send the funds to the owner of the account at the address on our records; or (d) refer the matter to an appropriate court or arbitrator for judgment or decision.
Your Privacy. The privacy and security of your information is important to us. Please see our Important Notice Concerning Accountholder Privacy, which is included in your welcome letter and which is available at http://personalsavings.americanexpress.com/glbanotice.
Notices and Account Correspondence. Any notices and other account-related correspondence will be either mailed to you via U.S. Mail to the last address shown in our records for your account, or sent electronically to you to the last email address you provided to us if you have authorized us, through our website, to deliver notices and correspondence to you electronically. Notice to one account holder will be considered notice to all joint account holders and will be effective upon mailing or sending electronically. We will not be responsible for items lost in the mail or misdelivered.
General. You may choose to make deposits into your savings account at any time. Please visit http://personalsavings.americanexpress.com or call 1-800-446-6307 to make deposits. Deposits may only be made by electronic funds transfer (EFT), including automated clearing house (ACH) transactions or, in our sole discretion, by wire transfers, or by check mailed to us at P.O. Box 30384, Salt Lake City, UT 84130-0384 (or such other address as we may provide to you from time to time). All deposits will be deemed made only when they are received by us in Salt Lake City, Utah. Deposits made by ACH are subject to the rules of the National Automated Clearing House Association and any regional clearing houses we may use from time to time (collectively, the ACH Rules). Before final settlement of any deposit, we act only as your agent, regardless of the form of endorsement or lack of endorsement on the item. We reserve the right to refuse, return or limit any deposit you make to your account. See the Funds Availability Disclosure section of this agreement for information about when you can withdraw funds you deposit.
FDIC Insurance. Funds in deposit accounts with us are insured by the Federal Deposit Insurance Corporation (FDIC) and backed by the full faith and credit of the United States, up to the applicable limit. The amount of insurance coverage you have may depend on the number of deposit accounts you have with us, the balances in those accounts, and the ownership of those accounts. If you want additional information, you may contact us at 1-800-446-6307 or visit the FDIC’s website at www.fdic.gov or www.myfdicinsurance.gov.
General. Any of you, acting alone, may withdraw or transfer all or any part of the available account balance at any time, subject to the Funds Availability Disclosure section of this agreement, our right of set-off and security interests, any holds that may be placed on funds in the account, and (for Certificate of Deposit accounts) any applicable early withdrawal penalty. Each of you (until we receive written notice to the contrary) authorizes each other account holder to endorse any item payable to you or your order for deposit to this account or any other transaction with us.
Withdrawal Rules. When you create an account with us on-line you will be given an opportunity to link your account with us to an account you have with another financial institution. We will call that other account a linked account. You must have a linked account to make withdrawals that are payable to you. Withdrawals are also subject to the Truth-in-Savings disclosure below and its “Transaction Limitations” provisions for High-Yield Savings accounts and Certificates of Deposit accounts.
Waivers. If we honor a nonconforming request once, we are not required to do so again. We may treat continued abuse of any stated limitation in this agreement as the basis for closing your account, or we may at our option charge you a fee and/or convert the account to a non-interest bearing account. The fact that we may choose in our sole discretion to honor a withdrawal request that overdraws the available account balance once does not obligate us to do so again.
Notice of Withdrawal. We reserve the right to require not less than 7 days’ notice in writing before each withdrawal from your account. (The law requires us to reserve this right, but it is not our general policy to use it.)
On-line Transfer Requests. On-line requests to transfer funds must be received by us by 5:00 PM Eastern Time on a business day in order for funds to be transferred on that business day. Requests received by us after 5:00 PM Eastern Time or on a day that is not a business day will be processed on the next business day.
Telephone Transfer Requests. Requests to transfer funds by telephone must be received by 5:00 PM Eastern Time on a business day in order for funds to be transferred from your account with us to your linked account on that business day. Requests received after 5:00 PM Eastern Time or on a day that is not a business day will be processed on the next business day.
Insufficient Funds. You may not make withdrawals in excess of the available funds in your account. Available funds include the account balance less holds. We will not be liable for dishonoring any withdrawals that would exceed the available funds in your account. Refer to the “FUNDS AVAILABILITY DISCLOSURE” section of this agreement for details. If we receive a withdrawal, automatic transfer, electronic transaction, or other item drawn on your account, and there are insufficient funds in the account to pay the item, we will either (a) pay the item and create an overdraft in your account (we may hold balances in your other accounts that you may have with us until the overdraft is paid); or (b) return the item unpaid. Unless specifically mandated by law, if your account has insufficient funds to pay all items presented for payment on a particular day, we may choose to honor withdrawals in the order they are received by us or in any other order we choose (including, for example, according to the dollar amount of the items, from highest dollar amount to lowest dollar amount), at our discretion and without notice. If we choose to honor a withdrawal request that overdraws the account, you agree to immediately reimburse us upon our demand for the amount of the overdraft along with applicable collection fees and/or legal fees. If we choose in our sole discretion to pay an item by overdrawing your account, we are not obligated to continue paying items by overdrawing your account in the future.
Closing Accounts. We may close your account at any time and terminate this agreement without notice to you if we deem your use of the account to be inconsistent with the terms of this agreement including, but not limited to:
We may also close this account at any time upon reasonable notice to you and tender of the account balance electronically or by mail. Any debits presented or represented for payment after the account is closed may be dishonored, but we are not under any obligation to do so and will not be liable if we fail to dishonor any item or other debit presented. Reasonable notice depends on the circumstances, and in some cases it might be reasonable for us to give you notice after the change or account closure becomes effective. For instance, if we suspect fraudulent activity with respect to your account, we might immediately freeze or close your account and then give you notice.
Re-Opened Accounts. We reserve the right to re-open an account; any re-opened account will be subject to all the terms and conditions then in effect for that type of account.
ADDRESS OR NAME CHANGES. We require a physical street address if your mailing address is a P.O. box. You are responsible for notifying us of any change in your address (including your email address) or name. Unless we agree otherwise, a name change must be made in writing by at least one of the account holders. In some instances, we may request additional information for verification purposes. We will attempt to communicate with you only by use of the most recent address you have provided to us for your account, as shown in our records. We will not be responsible for your failure to receive any communications from us if you have not provided us with your current name and address.
TRANSACTIONS BY MAIL. You may deposit checks by mail. You should endorse the back of the check sent to us through the mail with the words “For Deposit Only,” and you should include your correct account number underneath to ensure the check is credited to the correct account. If you do not use a deposit slip or provide us with instructions indicating how or where the check should be credited, we may return the check to you. Following your deposit, examine your statement carefully or call us to ensure that we received the check. Do not send cash to us through the mail for deposit.
FAX INSTRUCTIONS AND TELEPHONE MESSAGES. We are not required to act upon any instruction that we receive from you via facsimile transmission or provided to us via telephone message service or machine.
PROPER EQUIPMENT. You are responsible for obtaining and maintaining all telecommunications, broadband and computer hardware, equipment and services needed to access and use your account on-line, and paying all charges related thereto.
LEVIES AND GARNISHMENTS. We must comply if served with any notice of garnishment or of attachment, tax levy, injunction, restraining order, subpoena, or other legal process relating to your account. We may charge a legal process fee and may assess this fee against any account you maintain with us, including the account that is subject to the legal process. Levies and garnishments are subject to our right of set-off and security interests.
POWER OF ATTORNEY. You may wish to appoint an agent to conduct transactions on your behalf by executing a power of attorney. We undertake no obligation to monitor transactions to determine whether the acts of the agent are on your behalf. You agree not to hold us responsible for any loss or damage you may incur as a result of our following instructions given to us by an agent who appears to be acting under a valid power of attorney.
ENDORSEMENTS. We may supply any missing endorsements for any item we accept for deposit or collection, and you warrant that all endorsements are genuine. IRS and insurance checks that are not endorsed by the payee(s) will be returned to you. To ensure that your check is processed without delay, you must endorse it (sign it on the back) within 1 and 1/2 inches of the trailing edge of the check. The trailing edge is the left side of the check looking at it from the front. Checks not made payable to you will be returned.
DIRECT DEPOSITS. If, in connection with a direct deposit program, we deposit any amount in your account that should have been returned to the government for any reason, you authorize us to deduct the amount of our liability to the government from the account or from any other account you have with us, without prior notice to you, in addition to any other remedy we are entitled to under law to recover the amount of our liability from you. You agree not to initiate any transactions on the account that would violate the laws of the United States.
DORMANT ACCOUNTS. If you have an account with an outstanding balance for one year or more, and we have no records of endorsed deposits, withdrawals or communications from you about your account, the account will become dormant. If your account becomes dormant, we will try to locate you at the address and telephone number shown in our records for your account. After a specified period of time, if we are still not able to locate you, we will be required to deliver the account to the state as abandoned property. You will then need to apply to the state for return of your funds. If your account is dormant, we may, in our discretion, decide not to pay requests for withdrawals on the account until we have verified your request for authorized withdrawal.
OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION. These rules apply to your account depending on the form of ownership and beneficiary designation, if any, specified on our records for your account. We reserve the right to refuse some forms of ownership on any or all of our accounts. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds.
An Individual Account is an account in the name of one person. A Joint Account With Right of Survivorship (And Not As Tenants In Common) is an account in the name of two persons. Each of you intends that when you die, the balance in the account (subject to any previous pledge to which we have agreed) will belong to the survivor. Other types of account ownership are not available from us at this time.
PAYABLE ON DEATH ACCOUNTS. Without having to establish a trust, you may, subject to applicable law, designate your account to be payable on your death to one or more designated beneficiaries (payable on death account). You may designate up to six beneficiaries. If you establish a payable on death account, the account belongs to you during your lifetime and your beneficiaries have no interest in or any access to the account until your death. Upon your death (or in the case of a joint account, on the death of the last-surviving joint account owner), all of the funds in the payable on death account will be owned by the beneficiary (or in the case where there is more than one beneficiary, in equal shares by the beneficiaries then living). The funds in your payable on death account are not governed by your will or inherited by your heirs. If there is more than one beneficiary, in our sole discretion and subject to our right of set-off and security interest, we may pay the funds in a payable on death account in equal shares to the account’s living beneficiaries or pay the funds by issuing a check in the name of all living beneficiaries and giving the check to any one beneficiary. We have no obligation to notify any beneficiary of the existence of a payable on death account or the vesting of an interest in such an account. Certain state law restrictions may apply to payable on death accounts. You are solely responsible for complying with applicable law in establishing a payable on death account. We make no representation that designating your account as a payable on death account is advisable. You should consult an attorney or other qualified estate planning professional before designating your account as a payable on death account. When establishing a beneficiary you will be required to provide us with the TIN of such beneficiary. Spousal consent is required in community property states (AZ, CA, ID, LA, NV, NM, TX, WA, and WI) if a spouse is not named as the sole primary beneficiary.
DEATH OR INCOMPETENCE. You agree to notify us promptly if any person with a right to withdraw funds from your account dies or becomes legally incompetent. We may continue to honor all instructions or fund transfers until: (a) we know of the death or legal incompetence of an account holder, and (b) we have had a reasonable opportunity to act on that knowledge. You agree that we may honor fund transfers requested or initiated on or before the date of death or legal incompetence of an account holder for up to ten (10) days after such death or legal incompetence unless ordered to stop payment by someone with a legitimate interest in the account.
AMENDMENTS. We may change any term of this agreement. Rules governing changes in interest rates are provided in the Truth-in-Savings disclosure. For other changes, we will give you a reasonable notice in writing or by any other means permitted by law.
WIRE TRANSFER AGREEMENT. We may require written requests to initiate outbound wire transfer requests. We do not have to accept wire transfer requests to accounts that are not linked to your account. In our discretion, we may agree to accept a telephone, fax, e-mail, oral or written instruction to transfer funds from your account by electronic means other than wire transfer. We may accept and verify or refuse to accept or process requests for wire transfers at our discretion.
LIMITED LIABILITY. Unless we have acted in bad faith or are otherwise prohibited by applicable law, we will not be liable to you for performing (or failure to perform) our services under or in connection with this agreement. Without limiting the foregoing, we will not be liable for delays or mistakes that happen because of reasons beyond our control, including, without limitation, acts of civil, military or banking authorities, national emergencies, insurrection, war, riots, acts of terrorism, failure of transportation, communication or water supply, or malfunction of or unavoidable difficulties with our equipment. If an arbitrator or a court finds that we are liable to you for what we did (or did not do, as the case may be) under or in connection with this agreement, you may recover from us only your actual damages, in an amount not to exceed the total interest paid by us to you under and in connection with this agreement during the six-month period immediately preceding the event giving rise to our liability. You agree that the dollar limitation described in the preceding sentence is reasonable, to the extent permitted by applicable law.
INDEMNIFICATION. You agree to indemnify and hold us, our directors, officers, employees and agents (and the same of our subsidiaries and affiliates and our subsidiaries and affiliates themselves) harmless from and against losses arising in connection with the services provided under this agreement, except for losses arising out of our own gross negligence or willful misconduct. You further agree to hold us, our directors, officers, employees, and agents (and the same of our subsidiaries and affiliates and our subsidiaries and affiliates themselves) harmless from losses arising out of actions taken or omitted in good faith by us in reliance upon instructions from you. We are not responsible for any actions or omissions by any third party. If you give us instructions that we believe may expose us to potential liability, we may refuse to follow your instructions. We are under no obligation to follow, and we will not be liable to you if we choose not to follow, such instructions. If we do, we may ask you for certain protections such as a surety bond or an indemnity agreement in a form that is satisfactory to us.
RIGHT OF SET-OFF. If you owe us or any of our subsidiaries or affiliates money and that money is due, you agree to grant us and our subsidiaries and affiliates a security interest in your account and any account you have with our subsidiaries and affiliates, and you also agree to grant us the right, on our own behalf and on behalf of our subsidiaries and affiliates, to the maximum extent permitted by applicable law, to withhold or withdraw (set-off) from your account any amounts you owe to us or any of our subsidiaries and affiliates for use of another account that you have with us or any of our subsidiaries and affiliates, including a charge, credit or other payment account, and such amount owed to us or any of our subsidiaries and affiliates is past due by sixty days or more. You agree that the security interest you have granted us by this agreement is consensual and is in addition to our right of set-off. We may exercise our rights of set-off and security interest without recourse to other collateral, if any, and even if our action causes you to lose interest, incur an early withdrawal penalty or any other consequence. If we exercise our right of set-off, we will notify you to the extent required by applicable law. Except to the extent prohibited by applicable law, we may set off all of the funds in a joint account to pay money owed to us by any owner of the joint account, irrespective of who contributed funds to the joint account. Our failure to demand payment does not waive our rights hereunder. If any funds in your account are exempt from execution, levy, attachment, garnishment, seizure, set off or other equitable process (including, without limitation, any Social Security, Supplemental Security Income, veterans or other Federal or state benefits), you agree to waive such exemption to the extent permitted by applicable law. Our right of set-off and our security interest may not apply to your account if the debt is created under the terms of a credit card agreement, or the right of set-off or the granting or exercise of a security interest in your account is prohibited by applicable law.
High-Yield Savings Account
Minimum Balance to Open the Account.
There is no minimum deposit required to open your high-yield savings account.
Rate Information.
The current interest rate and Annual Percentage Yield (APY) on your account will be disclosed in your account-opening documents and on your periodic statement. The interest rate and APY are established at our discretion and are variable and subject to change at any time without notice to you.
Compounding Frequency.
Interest on your high-yield savings account will be compounded daily.
Crediting Frequency.
Interest will be credited to your account on the monthly cycle date.
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 balance in the account on each day.
Accrual of Interest on Deposits.
Interest begins to accrue on the business day the deposit is received. If the deposit is received before 5:00 PM Eastern Time on a business day we are open, we will consider that day to be the day of your deposit. If your deposit is received after 5:00 PM Eastern Time or on a day we are not open, we will consider that the deposit was received on the next business day we are open.
Transaction Limitations.
Withdrawals may be made by EFT (including, in our sole discretion, wire transfer) only, and ACH withdrawals are subject to the ACH Rules. You may make up to six transfers or withdrawals by means of a preauthorized, automatic, or telephone or on-line transfer to another account of yours during any calendar month (or statement cycle of at least four weeks). A preauthorized transfer includes any arrangement with us to pay funds from your account to a linked account at (a) a predetermined time; (b) on a fixed schedule; or (c) upon oral or written orders received through the initiating person or by mail. You may also authorize other persons to initiate preauthorized transfers from your account on your behalf. If you repeatedly exceed the transfer limitation set forth above, your account will be subject to closure. The amount of withdrawals or deposits made in a single day may not exceed $250,000. We may refuse any withdrawal request that you attempt on forms not approved by us or by any method we do not specifically permit. We may refuse any withdrawal request that is greater in number than the frequency permitted, or which is for an amount greater than any withdrawal limitations. We will use the date the withdrawal is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. See the Funds Availability Disclosure section of this agreement for information about when you can withdraw funds you deposit.
Certificate of Deposit Account
Minimum Balance to Open the Account.
There is no minimum deposit required to open a Certificate of Deposit account.
Rate Information.
The interest rate and APY on your account will be disclosed in your account-opening documents and on periodic statements. The interest rate is fixed and is established on the business day we receive your fully completed application for the account (provided we receive the account-opening deposit no later than 30 days after your account application is approved). (Please see “Accrual of Interest on Deposits,” below.) You will be paid this rate until first maturity (or until any early account closure, if applicable).
Compounding Frequency.
Interest on your account will be compounded daily.
Crediting Frequency.
Interest will be credited to your account on your cycle date, on a monthly, quarterly or annual basis, based on your written election.
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 balance in the account each day.
Accrual of Interest on Deposits.
Interest begins to accrue on the business day the account-opening deposit is received. If the deposit is received before 5:00 PM Eastern Time on a business day we are open, we will consider that day to be the day of your deposit. If your deposit is received after 5:00 PM Eastern Time or on a day we are not open, we will consider that the deposit was received on the next business day we are open.
Withdrawal of Interest Before Maturity,
You may withdraw interest credited to your account before the maturity of your Certificate of Deposit, monthly, quarterly or annually, based on your written election. The Annual Percentage Yield disclosed in your account-opening documents assumes interest remains on deposit until maturity. A withdrawal of interest before maturity will reduce earnings.
Transaction Limitations.
You may not make any additional deposits into your account before maturity. You may withdraw all of the principal from your account before maturity. You may not make a partial withdrawal of some of the principal from your account before maturity. See the Funds Availability Disclosure section of this agreement for information about when you can withdraw funds you deposit. Any early withdrawal of principal is subject to a penalty. You can withdraw interest accrued and credited to your account before maturity at any time without penalty.
Early Withdrawal Penalties.
A penalty may be imposed for any withdrawal of principal before maturity. You understand that if the amount required to be forfeited is greater than the interest earned or paid on your Certificate of Deposit account, the difference will be deducted from principal. (In certain circumstances, such as the death or incompetence of an owner of the account, we may agree to waive the early withdrawal penalty.)
For a CD with a Term of 12 Months or Less:
To Calculate the CRV:
The CRV estimates the interest cost that we would incur if we were to replace your early withdrawn or closed CD with another replacement CD. The replacement CD would be of a term that is closest to but not greater than the remaining term on your original CD. To calculate the CRV, we take the difference between the (lower) APY on your original CD and the (higher) APY on the replacement CD and apply this difference to your withdrawn amount, multiplied by the number of years (or partial year) remaining on your withdrawn or closed CD. (If the APY on the replacement CD is less than or equal to the APY on your original CD, there is no applicable CRV on the withdrawn amount. 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 on your original CD, at the time of your early withdrawal or early account closure, we will use the lowest APY we are offering to the general public for a replacement CD to calculate any applicable CRV.)
Automatic Renewal.
Your CD account automatically renews at maturity, unless we are no longer offering a CD account with the same term as your maturing CD account. At maturity, you will have a 10-calendar-day period (grace period) in which you can withdraw funds from your account without penalty. You may prevent automatic renewal if you withdraw the funds in your CD account at maturity or within the grace period, or if we receive written notice from you within the grace period. Written notice may be sent to us at P.O. Box 30384, Salt Lake City, UT 84130-0384 (or such other address as we may provide to you from time to time). If you prevent automatic renewal of your CD account, interest will accrue at the rate in effect before maturity until the day within the grace period that you withdraw your funds or that we receive written notice. Each automatic renewal term will be the same as the original term, beginning on the maturity date. We will set the interest rate on your renewal CD account at our discretion. To determine your rate on renewal, please call 1-800-446-6307.
General. We may provide you with EFT services, including direct deposits into your account, preauthorized transfers from your account and telephone and on-line transfers.
Availability of Funds. You agree that the amount of any EFT will not exceed the available funds in your account(s). We may in our sole discretion permit an EFT to create an overdraft in your account. If we are unable to complete an EFT or perform any other EFT service for any reason associated with your account, the EFT or other service may not be completed and we will not notify you unless required by applicable law.
Stopping Preauthorized Payments
Right and Procedure to Stop Preauthorized Payments.
If you have told us in advance to make regular payments from your account, you can stop any of these payments by calling us at 1-800-446-6307, 24 hours a day, 7 days a week, or writing to us at P.O. Box 30384, Salt Lake City, UT 84130-0384 (or such other address as we may provide to you from time to time) in time for us to receive your request 3 business days or more before the payment is scheduled to be made. You must tell us the exact dollar amount of the payment. If you call, we may also require that you put your request in writing and get it to us within 14 calendar days after you call. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled and we do not do so, we will be liable to you for your losses or damages.
Refusal to Pay a Preauthorized Transfer.
If we refuse to make a preauthorized transfer because your account has insufficient funds to cover such transfer, we will mail or deliver to you, on or before the next business day, notice of our refusal to pay the transfer.
Preauthorized Credits (Direct Deposits). If you have arranged to have direct deposits made to your account at least once every 60 calendar days from the same person or company, the person or company making the deposit will tell you every time they send us the money. You may also call us at 1-800-446-6307 to find out whether or not the deposit has been made.
Periodic Statements. We will mail or provide a monthly statement to you for your high-yield savings account(s) and a quarterly statement for your CD account(s).
Your Liability for Unauthorized Transfers. During account set-up, you will be invited to create a user name and password to protect your account from unauthorized access. You are responsible for maintaining the confidentiality and security of your user name and password. Tell us immediately if you believe any approved account access information or device, including your internet password, has been lost or stolen, or if you believe an EFT has been made without your permission or that someone has transferred or may transfer money from your account without authorization. If you tell us within two (2) business days, your liability will be limited to $50 if someone accesses your account without your authorization. If you do NOT tell us within two (2) business days after you learn that your account has been accessed without your authorization and we can prove that the unauthorized EFTs could have been prevented if you had notified us, you could lose as much as $500. Also, if your statement shows EFTs that you did not make, tell us AT ONCE. If you do not tell us within sixty (60) days after the statement is mailed to you, you may not get back any funds you lost after the sixty (60) days. If you believe your statement shows EFTs that you did not make or authorize, or if you believe an EFT has been made without your permission, call 1-800-446-6307. If you grant authority to make transfers to another person (such as a family member or friend) who exceeds the authority granted, you are fully liable for any transfers until you notify us that transfers by that person are no longer authorized. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend these time periods.
Our Liability for Failure to Transfer. If we do not complete a transaction to or from your account on time or in the correct amount according to our agreement with you, we may be responsible for losses or damages. However, we will not be liable if:
Disclosure of Account Information to Third Parties. In order that your privacy may be protected, we will not disclose any information to third parties about you or your account or the EFTs you make, except in the following situations:
In Case of Errors or Questions About Your EFTs. If you think your statement or receipt is wrong or if you need more information about a transfer listed on your statement or receipt, telephone us at once at 1-800-446-6307, or write to us as soon as possible at P.O. Box 30384, Salt Lake City, UT 84130-0384 (or such other address as we may provide to you from time to time). We must hear from you no later than 60 calendar days after we sent the FIRST statement on which the problem or error appeared.
If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days following the date you notified us. We will tell you the results of our investigation within 3 business days after completing our investigation following the date you notified us and will correct any error within one business day of determining that an error occurred.
We will try to determine whether an error occurred within 10 business days after we hear from you. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question following the date you notified us. If we decide to do this, we will provisionally credit your account within 10 business days following the date you notified us for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not provisionally credit your account.
For errors involving new accounts or foreign-initiated transactions, we may take up to 90 calendar days to investigate your complaint or question. Also, for new accounts, we may take up to 20 business days to credit your account for the amount you think is in error. For purposes of this paragraph, your account is considered a “new account” for the first 30 calendar days after the first deposit is made.
If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may, at no cost, examine and inspect all documents that we used in our investigation. You may also, for a reasonable fee to cover our related photocopying costs, ask for copies of the documents that we used in our investigation. If your alleged error concerns a transfer to or from a third party (for example, a Social Security payment), our investigation may be limited to a review of our own records. If we decide that there was no error, you may want to contact such third party to pursue the matter further.
Types of Available EFTs.
We offer each of the EFTs described below.
Telephone Transfers.
You may request fund transfers to and from your accounts by calling us at 1-800-446-6307.
On-line Transfers.
You may request fund transfers on-line between your account and another account of yours (at another depository institution or maintained with us) that you have linked to your account.
Preauthorized Payments.
Subject to the limitations disclosed in this agreement, you may arrange to have preauthorized payments made from your account.
Preauthorized Credits (Direct Deposits).
You may arrange to have direct deposits made to your high-yield savings account.
Other EFTs.
You may perform other transactions if and as we expand the types of available EFTs in the future.
Limits on the Type and Frequency of EFTs. For security reasons, there may be limitations on the number and dollar amounts of EFTs that you may perform. Please also see the Truth-in-Savings disclosure above and its “Transaction Limitations” provisions for High-Yield Savings accounts and Certificates of Deposit accounts.
Termination. We reserve the right to terminate your use of our EFT services for any reason and at any time without notifying you. You also have the right to terminate your use of the EFT services described in this agreement at any time by calling us at 1-800-446-6307 at any time during our normal business hours, or writing to us at P.O. Box 30384, Salt Lake City, UT 84130-0384 (or such other address as we may provide to you from time to time). If you call, we may require you to put your request in writing and get it to us within 10 calendar days after you call. If you terminate your use of our EFT services and you have arranged for preauthorized transfers involving third parties, you are required to inform any third parties that the transfers will cease. Any termination of your use of our EFT services, whether initiated by you or us, will not affect any of your or our rights and obligations under this agreement that have arisen before the effective date of such termination.
Business Days. Our business days are Monday through Friday, except Saturdays, Sundays and Federal holidays.
Your Ability to Withdraw Funds. Our policy is to delay the availability of funds from your deposits. During the delay, you may not withdraw the funds in cash, and we will not use the funds to pay withdrawals or debits that you have authorized or made from your account.
Determining the Availability of a Deposit.
The length of the delay is counted in business days from the day of your deposit. The length of the delay varies depending on the type of deposit and is explained below.
Funds from check deposits to your account will generally be available for withdrawal on the eleventh business day after we receive the deposit.
Funds from electronic deposits to your account that you have initiated through us will generally be available for withdrawal on the sixth business day after the deposit is initiated.
Funds from electronic deposits to your account that you have initiated through a person other than us will generally be available for withdrawal on the day we receive the deposit.
ARBITRATION. This Arbitration Provision sets forth the circumstances and procedures under which claims (as defined below) may be arbitrated instead of litigated in court.
Definitions: As used in this Arbitration Provision, the term “Claim” means any claim, dispute or controversy between you and us arising from or relating to your account, this agreement, and any other related or prior agreement that you may have had with us, or the relationships resulting from any of the above agreements (“Agreements”), except for the validity, enforceability or scope of this Arbitration Provision or the Agreements. For purposes of this Arbitration Provision, “you” and “us” also includes any corporate parent, or wholly or majority owned subsidiaries, affiliates, any licensees, predecessors, successors, assigns, any purchaser of any accounts, all agents, employees, directors and representatives of any of the foregoing, and other persons referred to below in the definition of “Claim.” “Claim” includes claims of every kind and nature, including but not limited to, initial claims, counterclaims, cross-claims and third-party claims and claims based upon contract, tort, fraud and other intentional torts, statutes, regulations, common law and equity. The term “Claim” is to be given the broadest possible meaning that will be enforced and includes, by way of example and without limitation, any claim, dispute or controversy that arises from or relates to (a) any account created under this agreement, or any balances on any such account, (b) advertisements, promotions or oral or written statements related to any such account, and (c) your application for any account. We shall not elect to use arbitration under this Arbitration Provision for any Claim that you properly file and pursue in a small claims court of your state or municipality so long as the Claim is individual and pending only in that court.
Initiation of Arbitration Proceeding/Selection of Administrator: Any Claim shall be resolved, upon the election by you or us, by arbitration pursuant to this Arbitration Provision and the code of procedures of the national arbitration organization to which the Claim is referred in effect at the time the Claim is filed (the “Code”), except to the extent the Code conflicts with this agreement. Claims shall be referred to either the National Arbitration Forum (“NAF”) or the American Arbitration Association (“AAA”), as selected by the party electing to use arbitration. If a selection by us of either of these organizations is unacceptable to you, you shall have the right within 30 days after you receive notice of our election to select the other organization listed to serve as arbitration administrator. For a copy of any applicable Code, to file a Claim, or for other information about these organizations, contact them as follows: • NAF at P.O. Box 50191, Minneapolis, MN 55405; website: www.arbitration-forum.com. • AAA at 335 Madison Avenue, New York, NY 10017; website: www.adr.org.
Significance of Arbitration: IF ARBITRATION IS CHOSEN BY ANY PARTY WITH RESPECT TO A CLAIM, NEITHER YOU NOR WE WILL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR HAVE A JURY TRIAL ON THAT CLAIM. FURTHER, YOU AND WE WILL NOT HAVE THE RIGHT TO PARTICIPATE IN A REPRESENTATIVE CAPACITY OR AS A MEMBER OF ANY CLASS OF CLAIMANTS PERTAINING TO ANY CLAIM SUBJECT TO ARBITRATION. EXCEPT AS SET FORTH BELOW, THE ARBITRATOR’S DECISION WILL BE FINAL AND BINDING. NOTE THAT OTHER RIGHTS THAT YOU OR WE WOULD HAVE IF YOU WENT TO COURT ALSO MAY NOT BE AVAILABLE IN ARBITRATION.
Restrictions on Arbitration: IF EITHER PARTY ELECTS TO RESOLVE A CLAIM BY ARBITRATION, THAT CLAIM SHALL BE ARBITRATED ON AN INDIVIDUAL BASIS. THERE SHALL BE NO RIGHT OR AUTHORITY FOR ANY CLAIMS TO BE ARBITRATED ON A CLASS ACTION BASIS OR ON BASES INVOLVING CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLIC OR OTHER PERSONS SIMILARLY SITUATED. The arbitrator’s authority to resolve Claims is limited to Claims between you and us alone, and the arbitrator’s authority to make awards is limited to awards to you and us alone. Furthermore, claims brought by you against us, or by us against you, may not be joined or consolidated in arbitration with Claims brought by or against someone other than you, unless agreed to in writing by all parties. No arbitration award or decision will have any preclusive effect as to issues or claims in any dispute with anyone who is not a named party to the arbitration. Notwithstanding any other provision in this agreement (including but not limited to the Continuation provision below) and without waiving either party’s right to appeal such decision, should any portion of this Restrictions on Arbitration provision be deemed invalid or unenforceable, then the entire Arbitration Provision (other than this sentence) shall not apply.
Arbitration Procedures: This Arbitration Provision is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-16, as it may be amended (the “FAA”). The arbitration shall be governed by the applicable Code, except that (to the extent enforceable under the FAA) this Arbitration Provision shall control if it is inconsistent with the applicable Code. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitations and shall honor claims of privilege recognized at law and, at the timely request of either party, shall provide a brief written explanation of the basis for the decision. The arbitration proceeding shall not be governed by any Federal or state rules of civil procedure or rules of evidence. Either party may submit a request to the arbitrator to expand the scope of discovery under the applicable Code. The party submitting such a request must provide a copy to the other party, who may submit objections to the arbitrator with a copy of the objections provided to the requesting party, within fifteen (15) days of receiving the requesting party’s notice. The granting or denial of such a request will be in the sole discretion of the arbitrator, who shall notify the parties of his/her decision within twenty (20) days of the objecting party’s submission. The arbitrator shall take reasonable steps to preserve the privacy of individuals, and of business matters. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The arbitrator’s decision will be final and binding, except for any right of appeal provided by the FAA. However, any party can appeal that award to a three arbitrator panel administered by the same arbitration organization, which shall consider anew any aspect of the initial award objected to by the appealing party. The appealing party shall have thirty (30) days from the date of entry of the written arbitration award to notify the arbitration organization that it is exercising the right of appeal. The appeal shall be filed with the arbitration organization in the form of a dated writing. The arbitration organization will then notify the other party that the award has been appealed. The arbitration organization will appoint a three-arbitrator panel that will conduct an arbitration pursuant to its Code and issue its decision within one hundred and twenty (120) days of the date of the appellant’s written notice. The decision of the panel shall be by majority vote and shall be final and binding.
Location of Arbitration/Payment of Fees: Any arbitration hearing that you attend shall take place in the federal judicial district of your residence. You will be responsible for paying your share, if any, of the arbitration fees (including filing, administrative, hearing and/or other fees) provided by the Code, to the extent that such fees do not exceed the amount of the filing fees you would have incurred if the Claim had been brought in the state or federal court closest to your residence that would have jurisdiction over the Claim. We will be responsible for paying the remainder of any arbitration fees. At your written request, we will consider in good faith making a temporary advance of all or part of your share of the arbitration fees for any Claim you initiate as to which you or we seek arbitration. You will not be assessed any arbitration fees in excess of your share if you do not prevail in any arbitration with us.
Continuation: This Arbitration Provision shall survive termination of your account(s) as well as any legal proceeding by you or us to collect a debt owed by the other and any bankruptcy by you or us. Except as otherwise provided in the Restrictions on Arbitration provision above, if any portion of this Arbitration Provision (other than the Restrictions on Arbitration provision) is deemed invalid or unenforceable, it shall not invalidate the remaining portions of this Arbitration Provision, the Agreements or any predecessor agreement you may have had with us, each of which shall be enforceable regardless of such invalidity.