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 on each account which is then offset by an earnings credit on the investable balance maintained in the account.

Activity Charges

Activity Charges Example

10 debits/credits	@	.15	=	1.50
60 checks written	@	.15	=	9.00
50 checks deposited - transit	@	.09	=	4.50
180 checks deposited - on us	@	.07	=	12.00
1 return item	@	3.00	=	3.00
Monthly service charge	@	7.50	=	7.50
				$38.10

Activity Charges Analysis Example

Average ledger balance	$17,800.00
Less average uncollected funds	800.00
Average collected balance	$17,000.00
Less reserve of 10.5%	$1,785.00
Investable banlance	$15,215.00
Earnings credit allowance @ 4.0%**	$50.72

Since the monthly earnings of $50.72 exceeds the activity charges of $38.10, there will be no maintenance fee for this month.

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.

Reserve Requirement - The percentage of all funds held on deposit that Federal law requires us to hold in reserve.

Investable Balance - The average collected balance less the reserve requirement.

Earnings 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 investable balance and earnings rate during the statement period.

Maintenance 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

Kiley Todd