Natick Federal Truth in Savings

Effective February 2008

Truth in Savings Disclosure

Regular Passbook and Statement Savings Accounts

Rate Information The interest rate and the annual percentage yield may change. At the Bank’s discretion, the interest rate paid on this type of account may change at any time. See the current interest rate and the Annual Percentage Yield paid in connection with this account.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Balance Computation Method We use the daily balance method to calculate the interest and to determine the minimum balance requirements on this type of account. This method applies a daily periodic rate to the principal in your account each day.

Minimum Balance Requirements

To open account............................................$10.00
To earn APY disclosed....................................none

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Transaction Limitations The Passbook Savings account requires that the passbook be presented for all transactions, with the exception of preauthorized credits (e.g. Social Security, etc.). The Statement Savings account allows six (6) transfers to another account or to third parties by preauthorized automatic, telephone or internet banking transactions each month.

NOW Checking Account

Rate Information The interest rate and the annual percentage yield may change. At the Bank’s discretion, the interest rate paid on this type of account may change at any time. See the enclosed pamphlet for the current interest rate and the Annual Percentage Yield paid in connection with this account.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements

To open account............................................$10.00
To earn APY Disclosed....................................none

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Transaction Limitations The Board of Directors or authorized officers of the Bank may at any time require a depositor to give written notice of his/her intention to withdraw by the use of a NOW Checking Account the whole or any part of his/her deposit. See Rules & Regulations for further details.

Basic Checking Account

Rate Information Not applicable because this is a non-interest bearing account.

Compounding and Crediting of Interest Not applicable.

Accrual of Interest on Deposits Not applicable.

Balance Computation Method We use the daily balance method to determine the minimum balance requirements on this type of account

Minimum Balance Requirements

To open account............................................$10.00
To earn APY disclosed........................Not applicable

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Transaction Limitations The Board of Directors or authorized officers of the Bank may at any time require a depositor to give written notice of his/her intention to withdraw by the use of a Basic Checking Account the whole or any part of his/her deposit. See Rules & Regulations for further details.

Money Market Plus Account

Rate Information The interest rate and the annual percentage yield may change. At the Bank’s discretion, the interest rate paid on this type of account may change on the 1st day of any month.

If the account balance falls below the Minimum Balance Requirement, the rate of earnings on the remaining balance shall be reduced to 25 basis points less than the rate the Bank is then paying on its regular savings accounts until the account balance again meets the Minimum Balance Requirement.

The Accountholder will receive a rate 25 basis points more than the rate for accounts with balances under $10,000.00, for each day the balance remains at $10,000.00 or more.

See the enclosed pamphlet for the current interest rate and the Annual Percentage Yield paid in connection with this account.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month. The interest accrual period begins on the last business day of the previous month and ends on the next to the last business day of the current month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements

To open account............................................$2,500.00
To earn APY disclosed...................................none

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule which will be delivered to you with this Disclosure brochure.

Transaction Limitations There are no limitations on the amount or frequency of withdrawals or transfers of funds from this account to any other account of the Accountholder within the Bank, when effected by mail or in person. For purposes of this account, a withdrawal means the receipt by the Accountholder of a direct payment from the Bank.

This type of account allows six (6)transfers to another account or to third parties by preauthorized, authomatic, telephone or internet banking transfers each month. No more than three (3) such transfers may be made by payments by check to third parties.

The Bank reserves the right to require 7 days written notice before making a withdrawal.

Personal Chioce Club Account Account

Rate Information The interest rate and the annual percentage yield may change. At the Bank’s discretion, the interest rate paid on this type of account may change at any time.

See the enclosed pamphlet for the current interest rate and the Annual Percentage Yield paid in connection with this account.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements

To open account............................................$10.00
To earn APY disclosed....................................none

Transaction Limitations This type of account does not allow withdrawals by electronic banking (i.e. ATM, telephone or Internet banking) or transfers to third parties by preauthorized or automatic withdrawals.

90 Day Notice Account

Rate Information The interest rate and the annual percentage yield may change. At the Bank’s discretion, the interest rate paid on this type of account may change at any time.

See the Deposit Rates for the current interest rate and the Annual Percentage Yield paid in connection with this account.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements

To open account...........................................$10.00
To earn APY disclosed...................................none

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Transaction Limitations The holder of this account is required to give the Bank written notice of at least 90 days prior to making each withdrawal, unless the withdrawal is being made within the first ten (10) days of the month and the funds being withdrawn have been on deposit at least 90 days.

Fixed-Rate/Fixed-Term Certificate of Deposit

Rate Information, Account Term & Maturity Date

See Deposit Rate Schedule for the current interest rate and the Annual Percentage Yield paid in connection with this class (term) of account.

The annual percentage yield assumes interest remains on deposit until the maturity date. A withdrawal of interest will reduce earnings.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements You must deposit $500.00 to open this account. The account balance may not be reduced below $500.00 without being closed.

Transaction Limitations After the account is opened, any withdrawal of principal from this account prior to the maturity date will be subject to a penalty (See the Early Withdrawal Penalty Section). Also, you may not make additional deposits to this account, until the maturity date.

Early Withdrawal Penalty We may impose a penalty if you withdraw any of the principal in your account before the maturity date. The penalty imposed will be computed as follows:

On Certificates with terms less than six (6) months: The penalty shall be an amount equal to the greater of (1) all earnings paid, credited or accrued on the amount withdrawn, or (2) one months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

On Certificates with terms at least six (6) months but not greater than twelve (12) months: The penalty shall be an amount equal to three (3) months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

On Certificates with terms greater than twelve (12) months: The penalty shall be an amount equal to six (6) months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

The penalty prescribed herein will not be imposed for a withdrawal of principal following the death or adjudication of incompetence of any Accountholder.

To the extent necessary to comply with these requirements, deductions shall be made from the amount withdrawn or the remaining account balance.

Earnings credited to this account during any term may be withdrawn at any time during such term without penalty. If the account is renewed at the same earnings rate, earnings during the preceding term as well as the current term may be withdrawn at any time without penalty during the Renewal Term. If the Renewal Term rate is different, earnings in the account at the commencement of the Renewal Term shall be deemed merged with the principal and only earnings for the Renewal Term may be withdrawn at any time without penalty during such term.

The rate of earnings for any Renewal Term and the seven (7) day grace period shall be at the rate the bank is paying at the time on renewed accounts of this class (term).

In the event the bank is not going to renew this account, you will receive written notice at least 30 days prior to any maturity date, that the account will not be renewed. In the event the account will not be renewed by the bank, upon maturity the account will be converted to a regular passbook savings account and receive earnings at the rate then paid on regular passbook savings accounts.

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Retirement Accounts - 18 Month Variable Rate Certificate

Rate Information, Account Term & Maturity Date

See the Deposit Rate Schedule for the current interest rate and the Annual Percentage Yield paid in connection with this class (term) of account.

This account shall initially receive earnings as set forth in the enclosed Deposit Rate Schedule. After the date of issuance, the Bank will adjust the interest rate monthly, on the first day of each month to be 1/2 of l% (50 basis points) above the auction rate at the most recent auction by the U.S. Treasury of 26-week bills listed as the Auction price (rate) in the Wall Street Journal. If this auction rate is no longer available, the bank will substitute a comparable rate. The interest rate will not be increased to more that 10% per annum, nor decreased to less than 2% per annum.

Additions shall initially receive earnings at the account's adjusted rate of earnings at the time of the addition.

The term of your account is eighteen (18) months.

The annual percentage yield assumes interest remains on deposit until the maturity date. A withdrawal of interest will reduce earnings.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements You must deposit $500.00 to open this account. The account balance may not be reduced below $500.00 without being closed.

Transaction Limitations After the account is opened, any withdrawal of principal from this account prior to the maturity date will be subject to a penalty (See the Early Withdrawal Penalty Section). You may make additional deposits of $100.00 or more to this account, without extending the maturity date.

This account cannot be assigned, or pledged as security for a loan.

Early Withdrawal Penalty We may impose a penalty if you withdraw any of the principal in your account before the maturity date. The penalty imposed will be computed as follows:

The penalty shall be an amount equal to six (6) months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

The penalty prescribed herein will not be imposed for a withdrawal following the death or adjudication of incompetence of the Accountholder, or if the Accountholder has attained the age of 59 1/2 or is disabled (as defined in 26 U.S.C. Section 72 (m)(7)).

To the extent necessary to comply with these requirements, deductions shall be made from the amount withdrawn or the remaining account balance.

Earnings credited to this account during any term may be withdrawn at any time during such term without penalty described in this section. However, such withdrawal of earnings may result in adverse tax consequences under IRS rules. If the account is renewed at the same earnings rate, earnings during the preceding term as well as the current term may be withdrawn at any time without penalty during the Renewal Term. If the Renewal Term rate is different, earnings in the account at the commencement of the Renewal Term shall be deemed merged with the principal and only earnings for the Renewal Term may be withdrawn at any time without penalty during such term.

Renewal Policy This account will be automatically renewed at the close of business on the maturity date. You have a grace period of seven (7) calendar days after the maturity date to withdraw the funds in your account without being charged a penalty. The rate of earnings for any Renewal Term and the seven (7) day grace period shall be at the rate the bank is paying at the time on renewed accounts of this class (term).

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Retirement Accounts - Fixed-Rate/Fixed-Term Retirement Certificate

Rate Information, Account Term & Maturity Date

See the Deposit Rate Schedule for the current interest rate and the Annual Percentage Yield paid in connection with this class (term) of account.

The customer may select any term between 6 months and 60 months. The rate of earnings shall be at the rate the bank is paying at the time on regular certificate accounts of the same class (term).

The annual percentage yield assumes interest remains on deposit until the maturity date. A withdrawal of interest will reduce earnings.

Compounding and Crediting of Interest Interest is compounded monthly and credited on the last business day of each month.

Accrual of Interest on Deposits Interest begins to accrue on the day of your deposit.

Minimum Balance Requirements You must deposit $500.00 to open this account. The account balance may not be reduced below $500.00 without being closed.

This account cannot be assigned, or pledged as security for a loan.

Early Withdrawal Penalty We may impose a penalty if you withdraw any of the principal in your account before the maturity date. The penalty imposed will be computed as follows:

On Certificates with terms at least six (6) months but not greater than twelve (12) months: The penalty shall be an amount equal to three (3) months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

On Certificates with terms greater than twelve (12)months: The penalty shall be an amount equal to six (6) months interest or dividends, whether earned or not, on the amount withdrawn at the interest rate being paid on the account, regardless of the length of time the funds withdrawn have remained in the account.

To the extent necessary to comply with these requirements, deductions shall be made from the amount withdrawn or the remaining account balance.

Fee Schedule Service fees and charges may be imposed as set forth in our separate Fee Schedule that will be delivered to you with this Disclosure brochure.

Rules and Regulations

All depositors in Natick Federal Savings Bank who open accounts entitling them to make withdrawals by Negotiable Orders of Withdrawal, which for convenience are herein after called checking accounts, agree to abide by the following regulations applicable to such checking accounts.

1. All items cashed or deposited will be handled by the Bank as agent for the depositor(s) subject to charge back or refund if for any reason final payment is not received in a form acceptable to the Bank. If claim is made with respect to any item subsequent to final payment on the grounds that such item was altered or bore a forged or unauthorized endorsement or was otherwise not properly payable, the Bank may withhold the amount thereof from the account until final determination of such claim. The use of negotiable orders of withdrawal (checks) with an account is governed by the rules and regulations hereinafter set forth, whichrules and regulations may, from time to time, be amended.

2. This checking account, whether it be in an individual or joint name, is for the use of the depositor(s) only.

3. The depositor(s) agree to use the forms supplied by the Bank. The Bank reserves the right to return unpaid any other form of order (check) or any order (check) incompletely or defectively drawn.

4. The depositor(s) are subject to certain charges in connection with the use of negotiable orders of withdrawal (checks). A schedule of such charges shall be supplied by the Bank to the depositor(s) when an account is opened. Such charges may be changed from time to time by the Bank, which agrees to supply the depositor(s) with a revised schedule of charges if any change is made.

5. Checking account statements reflecting account activity, charges associated therewith, and the balance in the account will be rendered to the depositor(s) not more frequently than once per month at the Bank’s convenience.

6. At the risk and written request of the depositor(s) the Bank will, without responsibility on its part so far as it may lawfully limit its liability, accept a stop-payment order on a checking account. The Bank will charge the depositor(s) in connection with such stop-payment orders in accordance with its current schedule of charges.

7. All deposits are received and credited by the bank subject to final collection. Collected funds to cover orders (checks) drawn must be on deposit the day before an order (check) is presented for payment, or payment may be refused and a charge applied.

8. The Bank reserves the right, at its sole discretion, to refuse accounts or further deposits in any existing account. The Bank also reserves the right, at its sole discretion, to discontinue or limit the practice of allowing withdrawals by negotiable order of withdrawal (check), and to terminate the deposit relationship at any time upon notice to the depositor(s).

9. The Bank may give notice to any depositor requiring such depositor to withdraw the entire amount on deposit in any checking account, or any part thereof. Such notice shall also advise the depositor that the Bank reserves the right after date specified in said notice not to make payment on any checking account check drawn on such account. After the date so specified, the Bank shall not be obliged to make any payment from such account except for the purpose of closing such account.

10. The depositor(s) will maintain at all times a minimum balance in checking accounts of at least $10.00. Any orders (checks) drawn on an account reducing the balance below this minimum will be returned unpaid and appropriate charges levied.

11. Deposits in checking accounts may be withdrawn at any time, provided however, that the Board of Directors or authorized officers of the Bank may at any time require a depositor to give written notice of his/her intention to withdraw by the use of a checking account the whole or any part of his/her deposit. Upon receipt of a written notice from any holder of a checking account of the Bank for the withdrawal from such account of all or any part of the withdrawal value thereof, the Bank shall within 30 days pay the amount requested: Provided, That if the Bank is unable to pay all withdrawals requested at the end of 30 days from the date of such notice, it shall then pay all withdrawals requested in accordance with such methods and procedures as to amounts and allotments of funds for such purposes as shall be provided in regulations made by the Office of Thrift Supervision in effect at the date of the request for withdrawal.

12. Rules and regulations governing the use of checking accounts may be revised or amended by the Bank at any time, and the Bank shall give notice of such changes by posting the same in a conspicuous place in the lobby of the Bank or of any branches it may maintain. Such changes will become effective immediately upon being posted.

13. Interest is paid monthly at such rates fixed by the Board of Directors.

14. The execution of a signature card by the depositor(s) upon the opening of an account shall constitute an agreement by the depositor(s) to the by-laws of the Bank and to all of the above regulations as are now in effect or hereafter amended.

Truth in Savings Disclosure & Rules and Regulations