![]() Your ability to become a member may be based on: As mentioned, there are membership requirements to join a credit union. If you’re interested in opening a share savings account, the first step is finding a credit union to join. Shared branch banking allows credit union members to access their accounts at other credit unions without paying added feesīanks may charge fees for accessing your accounts at branches or ATMs belonging to other banks The FDIC insures savings accounts at member banks The NCUA insures share savings accounts at member credit unions ![]() Minimum deposits for savings accounts at banks can vary, with some banks requiring $0 to open an account and others requiring $100 or more Savers may be able to open a share savings account with as little as $5 Share savings accounts earn dividends, which represent a percentage of the credit union’s profitsīank savings accounts earn interest, not dividends, with the highest rates typically offered by online banks Opening a savings account at a bank does not make you a part owner in the bank Share savings accounts represent your ownership or membership in a credit union ![]() Here’s how to tell them apart: Share Savings Accounts There are, however, a few differences between share savings and bank savings accounts. For instance, you might use a share savings account for your emergency fund or to set aside money for a vacation. You can use either one to hold money that you’d like to save. Share savings accounts and savings accounts offered at banks aren’t that different. A credit union member’s interest in all joint accounts combined is insured up to $250,000 as well. The NCUA’s Share Insurance Fund insures individual accounts up to $250,000. Instead, share savings accounts and other credit union deposit accounts are insured by the National Credit Union Administration (NCUA). So, does the FDIC insure share savings accounts at credit unions? No, the Federal Deposit Insurance Corporation does not cover those accounts. FDIC protection insures deposit accounts at member banks up to $250,000 per depositor, per account ownership type, per financial institution. You may be familiar with FDIC insurance if you’ve ever had a bank account. If your credit union participates in shared branch banking, you can also manage your accounts at branches of partner credit unions. You can also typically access your money through online and mobile banking, phone banking or at a local credit union branch. Again, that might include cash withdrawals via ATM card. Some credit unions do, however, offer ATM access as an option.Ĭredit unions allow you to withdraw money from a share savings account at any time. It’s not common to receive a debit card or ATM card with a share savings account, as they’re intended to hold money that you don’t necessarily plan to spend. Similar to a savings account at a bank, you may be able to link your share savings account to a checking account for convenient transfers. Fees, meanwhile, may be lower than what you might pay at a regular bank. Share savings account rates can vary by the credit union, though they can be higher than the annual percentage yield (APY) traditional banks offer to savers. These dividends are a portion of the credit union’s profits that are paid out to its members. Share savings accounts allow you to deposit money and earn dividends on your balance. What Is a Share Savings Account?Ī share savings account is a credit union version of a savings account. The opening deposit for either type of account is usually quite low, often as little as $5. Whether you’re expected to open a share savings account or a share checking account depends on the credit union you’re joining. ![]() Opening a share account is typically a requirement to join a credit union. In terms of their basic function and the purpose they serve, share savings accounts and share checking accounts are really no different than savings accounts or checking accounts offered at brick-and-mortar banks or online banks. You may also hear credit union checking accounts referred to as share draft accounts. Share accounts can be savings accounts or checking accounts. A share account represents an individual’s ownership in the credit union. What Is a Share Account at a Credit Union?Ĭredit unions are membership organizations in which each member owns a share. ![]()
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