What Is a Credit Union Share Account and Its Benefits Explained

A credit union share account is a type of savings account that's owned and controlled by its members, not by outside investors.

To open a credit union share account, you typically need to make a minimum deposit, which can be as low as $5.

You can access your credit union share account online or through a mobile app, making it easy to manage your finances on the go.

One of the main benefits of a credit union share account is that it earns dividends, which are essentially interest payments on your deposits.

A credit union share account is essentially a checking account, but with a unique twist. It's equivalent to buying a share in the credit union, which is why it's called a share account.

Share accounts don't have minimum balance requirements, which means you can open one with any amount of money. They also don't charge account maintenance fees, which is a big plus.

These accounts were created to give consumers more control over their finances. They were created under the Consumer Checking Account Equity Act of 1979.

Here are some key features of a credit union share account:

Having a share account can be a great way to manage your finances, and it's definitely worth considering if you're looking for a low-maintenance account option.

A share account at a credit union offers higher rates and lower fees compared to a traditional bank savings account. This is because credit unions can give a portion of their profits back to their members.

You'll also find a greater focus on providing personalized service at a credit union, which can be a big advantage if you value good customer service. Credit unions are member-owned, nonprofit institutions, after all.

With a share account, you'll have access to a range of financial products and services, including health savings, IRAs, business accounts, credit cards, and various loans. This can be really helpful if you need to manage multiple aspects of your financial life in one place.

Here are some key benefits of a share account at a credit union:

Interest earned on a share-draft account is compounded quarterly, making it a good option if you want to earn some interest on your money. A share-draft account is essentially like a checking account, allowing you to write unlimited checks and use a debit card for purchases and withdrawals.

Opening a share savings account at a credit union can be a smart financial move. You can earn higher rates and lower fees compared to a traditional bank savings account.

Credit unions are member-owned, nonprofit institutions, which means you may find a greater focus on providing personalized service. This can be a refreshing change from the for-profit banking industry.

By opening a share savings account, you'll gain access to a range of financial products and services. This can include health savings accounts, IRAs, business accounts, credit cards, and various types of loans.

The deposits in your share savings account are automatically covered by the National Credit Union Administration (NCUA). This means you're protected for up to $250,000 as an individual depositor.

Here are some key benefits of opening a share savings account:

A credit union certificate can be a smart savings move, especially if you're looking for a low-risk way to earn high dividends.

Credit union share certificates often offer higher interest rates than savings accounts, which means you can earn more on your savings without taking on the risks of the stock market.

By choosing a credit union certificate, you can set aside money for a specific goal, like a down payment on a house or a big purchase, and earn interest on it while you wait.

Many credit unions offer share certificates at different term lengths, so you can pick one that fits your timeline and savings goals.

Once your certificate matures, you can reinvest your funds into another certificate to keep earning dividends, which can add up over time.

A share account at a credit union is essentially equivalent to a bank's savings or checking account, and it refers to the depositor's ownership stake. Share accounts can be used for everyday spending money, just like a checking account.

There are no limits on how often you use a share draft account, making it a great choice for your everyday spending money. You can write checks, use a debit card, withdraw cash from an ATM, or pay bills online.

Share draft accounts are insured by the National Credit Union Administration (NCUA) for up to $250,000 per individual, just like bank deposits. This means your money is safe and secure.

Here are the key benefits of a share draft account at a credit union:

A share-draft account is a type of account offered by credit unions that's similar to a bank's checking account.

Share-draft accounts are insured by the National Credit Union Administration (NCUA), which means your deposits are protected up to $250,000 per individual.

These accounts allow you to write unlimited checks, use debit cards for purchases and withdrawals, and even shop online.

Share-draft accounts are essentially a safe place to keep your everyday spending money.

You can use your debit card to make point-of-sale (POS) purchases, withdraw cash from ATMs, or pay bills online.

Most share-draft accounts don't have minimum balance requirements or charge account maintenance fees, which is a big plus.

Some credit unions even offer reward checking and interest checking accounts, which allow you to earn interest on your deposits.

Share-draft accounts can also be used as collateral for a loan, which can help you build credit.

Here are some key features of share-draft accounts:

Credit union certificates are fixed-term deposit accounts that often offer higher rates than a regular savings account.

You can select a term length that aligns with your savings goals, whether it's a short-term or long-term investment.

A share certificate pays dividends to its account holders, while a CD pays interest.

Credit unions like GLCU offer share certificates with reduced or eliminated fees, higher savings rates, and lower interest rates on loans.

Deposits up to $250,000 are insured by the National Credit Union Administration (NCUA), which is backed by the full faith and credit of the US government.

Banks, on the other hand, offer CDs and insure deposits up to $250,000 with the Federal Deposit Insurance Corporation (FDIC).

If you're looking for more options beyond a traditional share savings account, there are several other types to consider.

A share certificate of deposit (CD) is a great choice if you can leave your money on deposit for a set period of time, as it typically offers a higher return on your savings.

Share money market accounts are like hybrid checking-savings accounts, offering checks and a debit card, and often paying higher dividends than a regular share savings account.

These accounts usually require a higher minimum deposit and ongoing balance, so make sure you can meet those requirements before opening one.

Specialty accounts are also available, including accounts geared toward children, teens, and students, business accounts, and health savings accounts (HSAs).

Here are some examples of specialty accounts: