Certificates of Deposit cont.

Common Features:
Interest Rate
Interest rates vary depending on the length of time you select. Check current rates.

Interest Calculation
FSNB uses the Daily Balance Method to calculate interest. This method applies the contracted interest rate to the principal in the account each day. Interest begins to accrue no later than the business day of the day of deposit.

Compounding
Interest may be added back to the CD only at maturity, or annually if the term is greater than 12 months. CD's with a term of less than one year will qualify for compounding of interest. If the CD provides for compounding of interest (CD's less than 1 year) the Annual Percentage Yield assumes you will not withdraw any interest prior to maturity.

Payment of Interest
You may choose to have your interest added back to the CD (Annually or at maturity), sent to you by check, automatically deposited into your FSNB checking or savings account or held for you to pick up. You may choose the timing for your interest payments: monthly, quarterly, semi-annually or annually. For CDs with a maturity longer than one year, interest will be paid at least annually.

Penalties for Early Withdrawal
No principal amount may be withdrawn from the Certificate of Deposit until maturity date, except with the permission of FSNB, and such early withdrawal is subject to a penalty. The penalty, however, will not be assessed in the event of death or a determination of incompetency of the payee or assigns. The amount of the penalty will be computed using the simple interest rate being paid on the CD. The penalty will be: For CD of 12 months or less.............91 days of interest
For CD longer than 12 months..........182 days of interest