General Description Of Deposit Accounts

A Deposit Account can be held in many ownership varieties including: individual, joint ownership with right of survivorship, trust, Uniform Gifts to Minors Act, fiduciary, not-for-profit, and other types as may be authorized upon request from time to time.

Checking accounts opened through the Bank of Internet USA Website (the "Website") are either demand deposit accounts (DDA) which are non-interest bearing, or negotiable order of withdrawal ("NOW") accounts, which pay interest. Both are subject to limitations set forth in this document. Checking Accounts may be owned by natural persons.

Certificate of deposit accounts opened through the Website are in modified book-entry form. We provide an account agreement/signature card that serves as the certificate. Certificates of deposit are opened for a fixed amount and held for a specific term. Withdrawal prior to the maturity of the term selected will result in an early redemption fee which will substantially reduce the interest earned and could result in the loss of some of the principal.

Through the Website, you can transfer funds in a savings account into your checking account or use the savings account funds to fund electronic bill payment transactions.

Money Market accounts pay interest and may receive additional deposits at any time. Account withdrawals are limited and excess transaction fees may apply.

You are responsible for all obligations arising out of the ownership and maintenance of a Deposit Account, including the amount of any check, draft, or other instrument (each, an "Item") deposited to the account and for which the account was credited, any overdrafts to the account created by you or any account owner or authorized user, any service charges to the account, or losses arising from the breach of any representation or warranty you make to us in the Account Agreement or under applicable law, and the costs we incur to enforce our rights under the Banking Documents or to collect any sum you owe us under the Banking Documents, including, to the extent permitted by law, our reasonable attorney's fees.