Basics Of Share Accounts Simplified: Find More Details Here!

If you want to open an account with a credit union, it would typically be a share account. For the uninitiated, share saving accounts pay dividends, much similar to the interest that a saving account of a traditional bank would pay. There is also something called the share checking account that credit unions provide, which are ideal for making every day payments and writing checks. Should you consider a share savings account at a credit union? In this post, we are sharing the basics, so that you can take a call.

Understanding share savings account

If you want to save your money with a credit union and get dividends in return, a share savings account is just right for you. Most credit unions offer a bunch of other services, such as credit cards, checking accounts, express checking accounts and more, for which you must first open a share savings account. In practice, there is no difference in the way a share savings account and a bank savings account are operated. Both offer the same services and are meant to be used in the same way.

Other things to know

With share savings account, you will get dividends, which is determined by many factors. The more you save, the more you earn. Most credit unions ensure that the dividends are calculated on a daily basis and paid to the account holder on the last day of each month. Credit unions also offer what’s called a ‘money market accounts’, which offers a better rate. Money from a share savings account can be withdrawn and used as required, but there may be a few restrictions. However, note that there could be some limits on withdrawals, and it will consider written checks, payments with debit cards, and online payments. Many credit unions do not offer debit cards with their standard savings accounts, but check in advance, and you may want to know if there are any restrictions, which is usually six in most cases.

Express checking accounts are also a great option for people who don’t visit credit unions regularly and would want to have an account without the need for a minimum balance. You can check online to find more details, or visit the credit union to ask relevant questions. Both savings accounts and express checking accounts are great for regular needs, especially if you want more than an average bank account. Apply now!

Post Author: Alison Lukas