Closing / Redeeming a Certificate Account (2)

Description

The dividend rate earned by this CD.

The original amount deposited to open this CD.

The total dividends earned by this CD, including accrued dividends.

The total amount of dividends already withdrawn from the CD account.

The date on which this CD was originally issued.

The date on which this CD matures.

The date on which the current certificate account was opened. This may be different from the Date Issued if this certificate has been automatically renewed.

The current balance in the CD account.

Any dividends earned on the CD but not yet paid to the member. This amount will be added into the Total CD Payout field below.

Any Marketing Club Benefit dividends earned on this certificate but not yet paid to the member. This amount will be added into the Total CD Payout field below.

If this member is subject to dividend withholding, this field shows the amount which is being withheld for payment to the IRS.

The penalty amount is calculated based on the configuration of the CD and the redemption amount. Use Penalty Calculator (F11) if a different penalty should be used. The penalty will be subtracted from the CD balance.

• NOTE: If redeeming an IRA certificate, any penalty amount is posted with code O and will appear in the “Other” bucket in the IRA balance file.  If redeeming an HSA certificate, any penalty amount is posed with code 9 and will appear in the “Other bucket in the HSA balance file.

The balance of the CD, plus any accrued dividends, minus dividend withholding and any penalties.

The amount of the redemption—either the full CD payout amount, or the partial amount entered on the first screen for a partial redemption.

The balance of the CD after the redemption is done.

Redemption Options

These fields control how the redemption will be handled. Some fields will only appear when performing a full redemption.

Redeem Via Check

Enter an amount to be issued to the member or other party via a check. (Depending on your check printing capabilities, you may also need to enter a check number.)

A name for the printed check, if one will be issued. This field is used only when there is an entry in the Check Amount field.

Redeem Via Account Transfer

If all or part of the funds from the CD are to be transferred to another account, enter the amount to be transferred here.

If an amount was entered into the Transferamount field, use these fields to enter the base account number and the account suffix to which funds will be transferred.

If transferring funds to another IRA or HSA account, use this field to enter the appropriate IRA/HSA code for the deposit.  

Redeem to Another CD

(These options appear only when performing a full redemption.) NOTE: If you are opening a new certificate with all or part of the funds of the certificate, once you use Post/Continue (F5), you will be presented with a warning message.  After confirming,you will advance to an additional screen, similar to the screen used when opening the certificate, which allows you to choose from the full range of dividend and maturity options for the new certificate.

Check this if you wish to take all or part of the certificate funds and use them to create a new certificate.  Remember that if IRA and HSA certificates can only be transferred into another IRA (or HSA) certificate type.

If depositing funds into an IRA or HSA certificate, use the lookup button to find the appropriate IRA/HSA code for the deposit.  

Use this field when rolling over part or all of the redeemed funds into another CD account. Enter a code to indicate the type of CD to be created. If rolling from an IRA CD, the system will require that the new CD is also an IRA, and automatically use the same IRA Plan Type as the original CD. Likewise, if rolling from an HSA certificate, the new one must also be an HSA type.

• Click the lookup button to see a list of your credit union's configured codes.

Use this field when rolling over part or all of the redeemed funds into another CD account. Enter a code to indicate the type of CD to be created. If rolling from an IRA CD, the system will require that the new CD is also an IRA, and automatically use the same IRA Plan Type as the original CD. Likewise, if rolling from an HSA certificate, the new one must also be an HSA type.

• Click the lookup button to see a list of your credit union's configured codes.

Enter one of your credit union's configured New Account Reason Codes to indicate the reason for the new certificate being opened. Learn more in the AnswerBook about how Reason Codes are stored.

• Click the lookup button to see a list of your credit union's configured codes.

Redemption Transaction Summary

This field is a total of the amounts in the Check Amount and the Transfer Amt fields. For full redemptions, this field also adds the New CD Amount field as well. It must be equal to the CD Redemption $ field in order for the redemption to post.

If withdrawing from an IRA or HSA certificate, use the lookup button to choose an appropriate IRA/HSA code for the withdrawal.

This field will appear only if attempting to redeem funds on a certificate with a secured balance (either misc. secured funds or pledged on a loan). The field displays the total amount currently secured on the certificate.

In this situation, you can either do a full renewal to another certificate with the same account suffix so that the funds will still be secured on that new certificate. (You could also do a partial redemption using excess funds above the secured amount only.)

If this account has accrued Marketing Club benefits (shown in the Accrued Benefits field), the benefit amount will be included in the total CD payout amount.

Check this box if you wish to pay those benefits now when redeeming all or part of the CD.

If you do not wish to pay these benefits, leave this box unchecked. The Accrued Benefit will no longer be included in the payout total, and when the transaction is posted, all accrued benefits will be cleared.

• The choice of whether or not to pay these benefits should be according to credit union policy for handling outstanding Club benefits on CDs that are redeemed. For example, you may choose to pay benefits on an account that has come to full maturity and is being redeemed manually, but not on a certificate being redeemed before its maturity date.

Keep in mind that unless a member is at active status in the Club, the system will not allow benefits to be paid. In this case, if the Pay Benefits flag is checked, an error will appear warning that the member is not an active member of the Marketing Club and therefore not entitled to club benefits.

This field will appear only if attempting to redeem funds on a certificate with a secured balance (either misc. secured funds or pledged on a loan). The field displays the total amount currently secured on the certificate.

Description

Use this to post the transaction and perform the redemption.

Use this to display the Penalty Calculator window. This feature can be used to calculate penalties manually, or to remove penalties altogether if desired.

• NOTE: It is possible to configure your certificate products so that a penalty is not calculated if the CD is being redeemed within a specific Grace Period. This would affect both renewing CDs and those that have just been opened. If a member chooses to redeem a certificate within the grace period, no penalty will be calculated automatically. However, the Penalty Calculator can be used to add the penalty on a case-by-case basis.

Use this to display your credit union’s configured electronic checklist, showing tasks that should be completed when a certificate is closed.