1. RATE INFORMATION FOR A SHARE ACCOUNT
A. The dividend rate paid for first quarter (January thru March, 2006) was as follows:

2.00% with an annual percentage yield of 2.02% for accounts over $100.00

Federal Law requires disclosure of the annual percentage yield (APY). Annual percentage yield assumes dividends remain on deposit for 365 days. Withdrawals of dividends will reduce earnings.

B. The dividend rate and annual percentage yield may change every quarter as determined by the Holly Family Parma Federal Credit Union Board of Directors.

2. FREQUENCY OF COMPOUNDING

A. Frequency:

Dividends will be compounded quarterly and will be credited after the close of business on the last day of each quarter. The dividend period is quarterly; for example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date is March 31. All other dividend periods follow this same pattern of dates. The fourth quarter dividend date is paid on December 31 * far the dates beginning October 1st and ending December 31st.

B. Effect of Account Closing:

If you close your account before dividends are paid, you will not be paid the accrued dividends for the period.

3. BALANCING INFORMATION

A. MINIMUM BALANCE REQUIREMENT
A minimum balance of $5.00 is required to open an account and required as a share par value for membership.
To earn the annual percentage yield disclosed, you must maintain a minimum average daily balance of $100.00 in your account for the dividend period. You will not earn any dividends for the dividend period if your average daily balance is below $ 100.00.

B. BALANCE COMPUTATION METHOD
Dividends are calculated using the average daily balance method. The average daily balance is calculated by adding the principal in the account for each day and dividing by the number of days in that period.
WHEN DIVIDENDS BEGIN TO ACCRUE
Dividends begin to accrue on the business day you make a deposit (whether cash or check) to your account.
Savings are insured by The National Credit Union Administration (NCUA) up to $100,000.00.

4. NATURE OF DIVIDENDS
Dividends are paid from current income and available earnings after transfers to reserves, if needed, at the end of a dividend period.