Northwestern Bank - small business checking – money management - deposited funds – deposit – analysis service charge system – minimum balance – investable balance maintained – average ledger balance

A Northwestern Bank Business Checking Account provides convenience and total flexibility in money management. As a customer, you will receive an accurate record of all payments made. You also have the assurance that deposited funds are promptly credited to your account.

Business checking accounts are on an analysis service charge system. Analysis considers the activity charges on each account which are offset by an earnings credit on the average collected balance maintained in the account.

Activity Charges

Debits	$ .15	each
Credits	$ .15	each
Checks deposited - transit	$ .09	each
Checks deposited - on us	$ .07	each
Deposit return items	$5.00	each
FDIC charge	$ .01	per $1000 ALB
Monthly fee	$7.50	per month
Float Ovedraft		varies

Activity Charges Example

5 deposits/credits	@	$ .15	=	$ .75
30 checks written/debits	@	$ .15	=	$4.50
20 checks deposited - transit	@	$ .09	=	$1.80
80 checks deposited - on us	@	$ .07	=	$5.60
1 deposit return item	@	$5.00	=	$5.00
FDIC charge				$ .33
Monthly fee	@	$7.50	=	$7.50

				$25.48

Analysis Example

Average ledger balance	$32,715.00
less average uncollected funds	800.00

Average collected balance	$31,915.00

Activity charges	$25.48
less earning credit allowance*	- 7.98

Total service charge**	$17.50

*Earnings credit rate changes each month based on the 30-day average of the 91-day U.S. T-bill auction rate.

**Plus tax.

Definition of Terms

Average Ledger Balance - The sum of each day’s ledger balance divided by the number of days in the statement period.

Average Uncollected Funds (float) - The sum of daily funds in process of collection divided by days in the statement period.

Average Collected Balance - The average ledger balance less average uncollected funds.

Earnings Credit Rate - The average of the 91-day T-bill rates for the prior month as determined from the Federal auctions held throughout the previous month’s statement period.

Earnings Credit Allowance - Credit given toward activity charges based on the average collected balance and earnings credit rate during the statement period.

Monthly Fee - Charge for services during the statement period.

*Subject to change at Bank's discretion.

** Earnings credit rate changes each month based on the 30-day average of the 91-day U.S. T-bill auction rate.

Bill Kepp

Tom Brown