NORDSTROM BANK DEPOSIT ACCOUNT CUSTOMER
AGREEMENTS AND DISCLOSURE STATEMENTS

PART I GENERAL PROVISIONS

AGREEMENT This Nordstrom Bank Customer Agreements and Disclosure Statements has been written in plain English for the reader's convenience. Throughout, the Nordstrom Bank Customer Agreements and Disclosure Statements, which include the Terms and Conditions of your account together with "Truth-in-Savings Disclosures" for certificates of deposit, collectively will be referred to as the "Agreement".

NORDSTROM BANK is a trade name of Nordstrom fsb, an FDIC insured federal savings bank with its home office in Arizona. As used in this Agreement the words "we," "our," and "us" mean Nordstrom Bank and the words "you" and "your" mean the account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. When you open or continue to have a deposit account with us by signing an Application/Signature Card, or other forms that you sign when you open or request an account, product or service and receive a copy of this Agreement, you are agreeing to the terms of this Agreement and to any amendments we make from time to time which are incorporated herein. This Agreement, along with any other documents we give you pertaining to your account(s), is a legally binding contract that establishes rules which control your account(s) with us. Please note that the contract can only be modified as provided in this Agreement. Please READ and RETAIN this Agreement so that you can refer to it whenever you have a question about your account. You will receive a separate schedule of rates, qualifying balances and fees if they are not included in this Agreement. If you have any questions after reading this Agreement, please call us, we will be happy to answer or clarify them.

ORGANIZATION OF AGREEMENT Part I of this Agreement sets forth general terms applicable to all deposit accounts subject to this Agreement. The rules governing ownership of deposit accounts in different capacities are described in Part II of this Agreement. The general rules governing deposit accounts are set forth in detail in Part III. Special rules applicable to certificates of deposit are set forth in detail in Part IV and the "Truth-in-Savings Disclosures", Part V. The headings in this Agreement are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inappropriate to do so, words and phrases used i n this Agreement should be construed so the singular includes the plural and the plural includes the singular. You should read this entire Agreement carefully.

DEPOSIT ACCOUNTS This Agreement covers all types of deposit accounts offered by us, now or in the future, including certificates of deposit. Unless otherwise expressly noted, this Agreement does not cover credit products such as the Nordstrom VisaŹ card or Nordstrom credit card. This Agreement applies to each deposit account with us held by a natural person primarily for personal, family, or household purposes.

LAWS GOVERNING YOUR ACCOUNT The deposit relationship between you and Nordstrom Bank is governed primarily by this Agreement. But it is also subject to applicable federal laws, and to the extent state law applies to this Agreement (except to the extent that this Agreement can and does vary such rules or laws) this Agreement will be governed by the laws of the state where the account is opened, if opened in person. If you were not physically present at the Nordstrom Bank main office when you opened your account (for example, if you opened your account by phone, through the mail, or over the internet) this Agreement will be governed by the laws of the state of Arizona, to the extent state law applies to this Agreement (except to the extent that this Agreement can and does vary such rules or laws). If any terms of this Agreement come into conflict with applicable law, those terms will be nullified to the extent they are inconsistent with the law, and the applicable law will govern. If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect.

DEPOSIT PROTECTION Depositors' funds are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC). Additional information on FDIC protection is available upon request.

LIABILITY You agree, for yourself (and the person you represent if you sign as a representative of another) to the terms of this Agreement and the schedule of charges. You authorize us to deduct these charges directly from your account balance as accrued. Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges, whether caused by you or someone else with access to your account. This liability is due immediately and can be deducted directly from your account balance whenever sufficient funds are available. You have no right to defer payment of this liability and you are liable regardless of whether you signed the item or benefited from the charge. This includes liability for our costs to collect the deficit including, to the extent permitted by law, our reasonable attorneys' fees and court costs.

RESERVATION OF RIGHTS We reserve the right to waive the enforcement of any of the terms of this Agreement with you with respect to any transaction or series of transactions, not to assess part or all of any fee or other amounts or not to exercise any other of our rights pursuant to this Agreement and, by doing so, we will not have waived our right to assess such fee or other amounts or exercise other rights pursuant to this Agreement in the future.

AMENDMENTS AND TERMINATION We may change any term of this Agreement at any time. Rules governing changes in interest rates are provided separately. For other changes, we will send you reasonable notice in writing or give you notice by any other method permitted by law. Your continued use of your account or a related service following the effective date of any change, addition or deletion to this Agreement will show your consent to that change, addition or deletion. We may also close this account at any time upon reasonable notice to you and tender of any account balance personally or by mail. Notice from us to any one of you is notice to all of you. You may terminate this Agreement between you and us at any time by notice in writing. Such a termination will not release you from any fees or other obligations incurred before the termination, those you incur in the process of closing your account, or for your liability on outstanding items.

PART II
OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION SIGNATURE CARD DESIGNATION

These rules apply to your account depending on the form of ownership and beneficiary designation, if any, specified on the account Application/Signature Card you sign when you open the account. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. The following provisions describe the rules applicable to the various classifications and forms of ownership designated on the Application/Signature Card applicable to your account.

INDIVIDUAL ACCOUNT By opening an account that is designated as an individual account on the Application/Signature Card you are considered by us as the sole owner of the account.

MULTIPLE PARTY ACCOUNT A personal account in the name of two or more natural persons is treated as a multiple party or "joint" account. We offer two types of multiple party accounts: (1) Multiple Party account with Right of Survivorship and (2) Multiple Party account without Right of Survivorship. The type of multiple party account is designated on the Application/Signature Card.

Multiple Party Account - With Right of Survivorship (Not As Tenants In Common) Two or more persons opening an account that is designated as a Multiple Party Account with Right of Survivorship on the Application/Signature Card will be treated by us as joint tenants with right of survivorship and not as tenants in common. Each of you intend that when you die the balance in the account (subject to any previous pledge to which we have agreed) will belong to the survivors. If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common.

Multiple Party Account – Without Right of Survivorship (As Tenants In Common) Two or more persons opening an account that is designated as Multiple Party Account without Right of Survivorship on the Application/Signature Card will be treated as tenants in common with no right of survivorship. None of you intend (merely by opening this account) to create any right of survivorship in any other person. If you choose this form of ownership, we encourage you to agree on and tell us in writing, of the percentage of the deposit contributed by each of you. This information will not, however, affect the number of signatures necessary for withdrawal.

REVOCABLE TRUST ACCOUNT If two or more of you create a Revocable Trust Account, you own the account jointly with survivorship. Beneficiaries of this account type cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of the owner(s) of the account, such beneficiaries will own this account in equal shares, without right of survivorship. The persons creating a Revocable Trust Account reserves the right to: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time.

IRREVOCABLE TRUST ACCOUNT This account is owned by the underlying trust and a copy of the trust document may be required in order to establish the account. The interests of the beneficiaries under the trust must be capable of determination without evaluation of contingencies and provided to us at the time of opening the account.

PAY-ON-DEATH ACCOUNT Pay-On-Death accounts may be created, to the extent authorized by law, by designation on the Application/Signature Card as a Pay-On-Death Account. These accounts use a statutory procedure to automatically transfer your account to the beneficiaries designated on the Application/Signature Card upon your death.

PART III
GENERAL RULES GOVERNING DEPOSIT ACCOUNTS DEPOSITS

TELEPHONE MONITORING AND RECORDING You agree that your telephone conversations with representatives of Nordstrom Bank may be monitored and/or recorded for quality assurance or other appropriate purposes, unless, at the commencement of each telephone conversation, you advise the Nordstrom Bank representative that you do not wish the call to be monitored and/or recorded.

CHANGE OF RESIDENCE If you move, you agree to promptly notify us of your new address.

SETOFF AND SECURITY INTEREST If you ever owe us money as a borrower, guarantor, or otherwise, and it becomes due, we have the right under law (called setoff) and under this Agreement (by which you grant us a security interest in your deposit account) to use the money from your account to pay the debt, even if withdrawal results in an interest penalty. In the case of a multiple party or "joint" account, each owner or "joint" owner agrees that we may use all funds in the account to satisfy any one of their individual obligations. The security interest granted by this Agreement is consensual and is in addition to our right of setoff. However, the setoff and security interest may not apply to your account if, (a) it is an IRA or a tax-deferred Keough Retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any other consensual security interest in goods), or (c) the debtor's right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of setoff.

ACH AND WIRE TRANSFERS If you originate a fund transfer for which Fedwire is used, and you identify by name and number a beneficiary financial institution, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution person or account, other than the one named. You agree to be bound by automated clearinghouse association rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank or payment is otherwise made as provided in Article 4A-403(a) of the Uniform Commercial Code.

DEATH OR INCOMPETENCE Neither a customer's death nor a legal adjudication of incompetence revokes our authority to accept, items until we know of the fact of death or of an adjudication of incompetence and have a reasonable opportunity to act on it. You agree to notify us immediately in writing if any account holder on your account dies or is declared incompetent by a court.

ADVERSE CLAIMS If we receive a claim to all or a portion of your account that is adverse to your interest or if a dispute arises regarding your account and we do not believe that we are otherwise adequately protected if we ignore that claim or we cannot in good faith determine the relative rights of the person(s) making claim to the funds, we may without liability to you and in our sole discretion place a hold on or interplead funds that are the subject of the claim. The hold may be placed for the time that we feel is reasonably necessary to allow a legal proceeding to determine the merits of the claim to be instituted. You agree to reimburse us for our expenses, including attorney's fees and expenses, arising out of such competing claims.

LIMIT OF LIABILITY You agree that our liability with respect to any claim you have against us in connection with any account or banking transaction with us will be limited to the actual value of any deposits not properly credited or withdrawals not properly debited, and that no liability for consequential, special, incidental or punitive damages will exist or can be asserted by you against us.

PART IV
SPECIAL RULES FOR CERTIFICATES OF DEPOSIT

TERM OF DEPOSIT The term of your Certificate of Deposit ("CD") is reflected on the Certificate of Deposit Confirmation notice. You are required to maintain your CD with us for that period of time.

INTEREST RATES Interest rates offered on new CDs vary from time to time in our sole discretion. You will receive a separate schedule of current rates, qualifying balances, and fees if they are not included in this Agreement. Current rate information is available at the Nordstrom Bank main office, online at www.Nordstrombanking.com or by calling our Personal Bankers toll free at 1-866-862-1149. Unless otherwise stated on the Certificate of Deposit Confirmation notice, the rate of interest paid on a CD does not vary during its term.

INTEREST PAYMENT OPTIONS The frequency with which the interest earned on your CD is paid varies depending on the term of the CD, and will be designated on the Certificate of Deposit Confirmation notice. The interest earned may be reinvested monthly to the CD or paid to another account held at another financial intuition of your choice via ACH transfer on a monthly basis. The option selected will be designated on the Certificate of Deposit Confirmation notice. If, at your option, the earned interest is added to the CD, it will earn the same interest rate that is being paid on the principal of the CD. If your CD does not automatically renew, interest will not be earned past its maturity date.

EARLY WITHDRAWAL PENALTY By purchasing a CD, you are contracting to keep the funds on deposit for a fixed period of time. You are required to maintain a minimum balance of $1,000 in your CD at all times. In the event of withdrawal of all or any portion of a CD before its stated maturity date, an early withdrawal penalty may be imposed. The amount of the early withdrawal penalty varies with the term of the CD and the amount withdrawn. The information concerning the amount of the penalty is disclosed in this Agreement, Part V, "Truth In Savings Disclosure" for certificates of deposit. Early withdrawal penalties will normally be deducted from the interest that has accrued on the CD. However, a reduction in the principal sum of the CD may be required if a sufficient amount of interest has not accrued at the time of the withdrawal to pay the full amount of the early withdrawal penalty. We make no express or implied agreement to pay a CD prior to its stated maturity. Consent by us to pay a CD before maturity may be given only at the time you make a request for early withdrawal and is solely at our discretion. No early withdrawal penalty will be imposed for early withdrawal if an owner of the CD is declared legally incompetent. Similarly, if an owner of the CD dies, no early withdrawal penalty will be assessed for early withdrawal if the request is made prior to the first renewal following the owner's death.

LIMITS ON NEGOTIABILITY AND TRANSFERABILITY CDs are generally not issued in negotiable form and are not subject to check or other order. Furthermore, the ownership of a CD may only be transferred to another party with our consent and then only in accordance with applicable rules and regulations that allow transfers in certain limited circumstances, such as death, incompetence, marriage, divorce, garnishment, or levy.

RENEWAL We issue two types of CDs: (1) automatically renewable CDs and (2) CDs that do not automatically renew. The type of CD you purchase will be designated on the Certificate of Deposit Confirmation notice. If your CD does not automatically renew, no interest will be earned after its stated maturity date. If your CD is automatically renewable, it will renew at each maturity date for a period of time equal to the original term of, and on the same terms and conditions as, the original CD. The interest rate for the renewal period will be the same rate offered by us on the maturity date for new CDs of like amount that have the same term as the original CD. You can prevent an automatic renewal by giving us written instructions to the contrary on or before the maturity date. There is no early withdrawal penalty for a withdrawal made within 10 calendar days after a maturity date of an automatically renewable CD.

NOTICES OF MATURITY We will mail you a notice on or before the maturity date of your CD advising you of the upcoming maturity date and the options that are available to you.

PART V
TRUTH IN SAVINGS DISCLOSURE CERTIFICATES OF DEPOSIT

Please note the following important information for Certificates of Deposit (CD).

Rate Information – Please refer to the enclosed insert titled "Nordstrom Bank Current Rates & Yields Schedule" for Interest Rate and Annual Percentage Yield disclosures – The interest rate on your account will be paid until the maturity date of your certificate.

Compounding and Crediting frequency - Interest will be compounded on a daily basis. Interest will be credited to your account on a monthly basis.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the ending principal balance in the account each day.

Accrual of interest on deposits - Interest begins to accrue on the business day you deposit non cash items (for example, checks). The Annual Percentage Yield (APY) disclosed to you assumes the interest received is reinvested at the account interest rate until maturity. A withdrawal of interest prior to maturity will reduce earnings.

Minimum deposit to open an account is $1,000.

Maturity Date - Your CD account will mature at the end of the term stated on your Certificate of Deposit Confirmation notice.

Withdrawals & Additional Deposits – You agree to keep your funds on deposit until the maturity date.
After your account is open, you may not make deposits into or withdrawals from your account until the maturity date.

Early Withdrawal Penalties - We may impose a penalty if you withdraw any of the principal before the maturity date. The fee imposed will equal half the term's simple interest. Early penalties may be waived in the event of death or legal incompetence of any of the account holders designated on the Signature Card.

Renewal Policies - If your CD account is automatically renewable, at maturity your CD will renew for the same term and at our interest rate and APY in effect on the maturity date for a new CD of the same term and amount unless we notify you otherwise. You will have ten (10) calendar days from the maturity date to withdraw your funds without being charged a penalty. For non-automatically renewable CD accounts if you do not renew the account, or you do not withdraw the funds, your funds will be returned to the last address you have given us.

FEE SCHEDULE – CERTIFICATES OF DEPOSIT

Outgoing wire transfers fee $15 (no charge to transfer all of a CD balance to an account held at another financial institution) (Domestic Only; No International wire transfers available).

We may inform you of other fees established by us for services you request which are not covered by this Agreement.

CONCLUSION

Nordstrom Bank appreciates your banking business. Our purpose is to keep our customers informed of the deposit options available at Nordstrom Bank, as well as our responsibility to provide a high level of personal and professional service on your account. For further information regarding your account or other available services at Nordstrom Bank, please contact a Personal Banker for assistance.
Thank you.

Nordstrom Bank
Toll-free 1-866-862-1149
www.Nordstrombanking.com

Mail deposits to:
Nordstrom Bank
P.O. Box 13539 Scottsdale, AZ 85267-3539

Mail statement inquiries to:
Nordstrom Bank
P.O. Box 13589 Scottsdale, AZ 85267-3589

Mail address changes and other inquiries to:
Nordstrom Bank
P.O. Box 13589 Scottsdale, AZ 85267-3589

Member FDIC

©2016 Nordstrom Bank. All Rights Reserved
Nordstrom Bank is a trade name of Nordstrom fsb, a wholly owned subsidiary of Nordstrom, Inc.

Nordstrom Bank Privacy Notice                                           Rev. 10/15

FACTS

WHAT DOES NORDSTROM BANK DO WITH YOUR PERSONAL INFORMATION?

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

  • Social Security number and income
  • account balances and payment history
  • transaction history and credit history

How?

All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Nordstrom Bank chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information

Does Nordstrom Bank share?

Can you limit this sharing?

For our everyday business purposes —
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus

Yes

No

For our marketing purposes —
to offer our products and services to you

Yes

No

For joint marketing with other financial companies

No

We don't share

For our affiliates' everyday business purposes —
information about your transactions and experiences

Yes

No

For our affiliates' everyday business purposes —
information about your creditworthiness

No

We don't share

For nonaffiliates to market to you

No

We don't share

To limit our sharing

  • Call us toll-free at 1.866.759.0151 — our menu will prompt you through your choice(s). Please note: When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

Questions?

Call us toll-free at 1.866.759.0151

What we do

How does Nordstrom Bank protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
For more information regarding our privacy practices, follow the Your Privacy Rights link located at the bottom of the page at nordstrom.com and click on Nordstrom Bank Privacy Notice.

How does Nordstrom Bank collect my personal information?

We collect your personal information, for example, when you

  • open an account or give us your income information
  • pay your bills or pay us by check
  • use your credit or debit card

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can't I limit all sharing?

Federal law gives you the right to limit only

  • sharing for affiliates' everyday business purposes — information about your creditworthiness
  • affiliates from using your information to market to you, subject to applicable law
  • sharing for nonaffiliates to market to you

State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

What happens when I limit sharing for an account I hold jointly with someone else?

Your choices will apply to everyone on your account.

Definitions

Affiliates

Companies related by common ownership or control. They can be financial and nonfinancial companies.

  • Our affiliates include the nonfinancial companies and divisions of the Nordstrom family of companies (such as Nordstrom, Nordstrom Rack, Nordstrom Direct, HauteLook, Jeffrey, Trunk Club, Inc., etc.). Nordstrom, Inc. also provides technology services and other services to Nordstrom Bank to assist us in serving our customers.

Nonaffiliates

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

  • Nordstrom Bank does not share with nonaffiliates so they can market to you.

Joint marketing

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

  • Nordstrom Bank does not jointly market.

Other important information

For accounts with California billing addresses: We will limit the sharing of personal information about you with our affiliates to comply with all California laws that apply to us.

For accounts with Vermont billing addresses: Vermont law prohibits the sharing of certain information about Vermont residents with our affiliates unless we are given written permission to share that information. If you wish to authorize us to share your information with our Nordstrom affiliates, please contact us at the number provided on page one of this notice and we will send you an authorization form.