It's smart to embrace forward thinking. This paperless account rewards users with a great interest rate and the opportunity to do nearly all their banking without coming to a Bank of Fayetteville branch.

• 4.51% Annual Percentage Yield on balances of up to $50,000
• 1.01% APY paid on all balances above $50,000
• Opening deposit of $100

Minimum monthly activity to receive interest:

• 10 VISA® CheckCard transactions (excludes ATM transactions)
• 1 Direct Deposit or ACH/Electronic Payment
• Receive an E•Statement

0.20% Annual Percentage Yield paid on all balances if requirements are not met.

• $1000 Overdraft Privilege*
• Unlimited check writing
• Opening deposit of $100
• 24-hour telephone banking
• Free Online Banking and Bill Pay
• Free VISA® CheckCard/ATM Card

* Overdraft service offered to accounts in good standing 30 days after account opening. Only one account with Overdraft Privilege per customer. The overdraft fee is $18 per NSF item. Consumers have 30 days to repay or cover the overdraft. An overdraft may result from 1) payment of checks, electronic funds transfers, or other withdrawal requests; 2) payments authorized by you; 3) the `return` of unpaid items deposited by you; 4) the imposition of bank service charges; 5) the deposit of items which according to the bank's Funds Availability Policy are treated as not yet available or finally paid. Generally, we will not approve an overdraft for you in excess of $500 for Real Checking accounts open more than 30 days, 800 for True and Wise checking accounts open more than 30 days, or $1000 for Smart, Sharp, and Sound checking accounts open more than 30 days. These limits include or Non- Sufficient Funds and/or Overdraft(NSF/OD) charge. The Bank of Fayetteville may refuse to pay an overdraft at any time.

Smart Checking will be undergoing a small makeover in the next couple of weeks. The changes are designed with you in mind!

Beginning with the January 8th statement cycle, you will see the following changes.

*New Balance Cap: The balance that we pay the highest rate of interest is changing from $25,000 to $50,000. This means that you will earn *4.51% APY(Annual Percentage Yield) on balances up to $50,000 and 1.01% APY on balances above $50,000 provided you meet the 4 requirements.

*Non-qualify rate: Beginning with the January 8th statement cycle, customers who do not qualify for the 4.51% APY will receive 0.20% APY on the account balance. You will see this change on your February Statement. What does this mean? You will receive some interest on your account even if you don't meet the four monthly requirements.

*Statement Cycle Change: Smart Checking statements will begin dropping on the second Wednesday of each month starting with the February Statement. Your interest will drop on the day you receive your statement instead of the day before. You will no longer see what the interest would have been if you had qualified, instead all qualified customers will receive their interest when they receive their statement. In order to qualify for the 4.51% interest, the 4 requirements must be met the 2nd Monday of each month.

The 2008 Smart Checking statement calendar is below:

These changes will be a great help to Smart Checking customers. The set statement calendar will help you remember when you need to complete the requirements. The new tier of interest will pay you even when you don't meet the requirements and the new $50,000 cap enables you to maintain higher balances and earn more interest.

*4.51% APY is effective May 15, 2008.