Is a share account the same as a savings account?

Is a share account a savings account?

A share account is a savings or checking account at a credit union. These accounts establish your share of ownership and allow you to use the great features a credit union has to offer as a member.

Is a share draft account the same as a savings account?

Your savings account represents your share of the credit union, thus it’s called a “share account” (or sometimes a share savings account). Checking accounts are “draft share accounts” because they’re share accounts you can draft checks from (and more, like use online bill pay and debit cards).

What does shares mean on a bank statement?

If you opened a checking account at a credit union rather than a bank, you will likely see the term “share draft” applied to your new account. … The “share” in the term share draft represents that ownership, while the “draft” refers to the checks.

What is regular shares account?

A Regular Share Account is required to maintain your membership with the credit union. This account is an excellent foundation for establishing savings habits. We encourage members to have a set amount allotted to their account each pay period. This way your share savings balance will grow.

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Can I withdraw money from a savings account?

You can visit your local bank branch and ask a teller to let you withdraw some money from your savings account. Once the money is in your wallet, you’re free to go to any store you’d like to spend it. Many banks also make it easy to make withdrawals from your savings account using an ATM card.

Can I make a payment from my savings account?

Savings Accounts Are Not Designed for Paying Bills. You should try to avoid using your savings account to pay bills directly. Savings accounts are designed to serve as long-term storage for your extra money. They aren’t intended to be used like a checking account to make payments to other people or businesses.

What is a share saving account?

A share account is a savings or checking account at a credit union. Share savings accounts pay variable dividends, the equivalent of a bank account’s interest. Share checking accounts, called “draft accounts,” are liquid and meant for payments and everyday spending.

Is a NOW account a savings account?

What is a NOW account? A NOW account, otherwise known as negotiable order of withdrawal account, is an interest-earning bank account whereby the owner may write drafts against the money held on deposit. Mutual savings banks, commercial banks, and savings and loan associations offer NOW accounts.

Can you buy shares in a credit union?

Because credit unions are cooperatively owned, members do not make deposits, but rather purchase shares. … What’s more, share draft accounts usually carry neither monthly fees nor minimum balance requirements, unlike many bank checking accounts.

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What’s a prime share account?

Our Prime Shares/Savings Account establishes an individual’s membership/ownership in the credit union and represents the par value of a share. As long as Abri members maintain the minimum balance in their share account, they are members for life, regardless of where they live or work.

What is main share?

Your savings dollars at the Credit Union are called “shares.” The funds you deposit into your Credit Union share (savings) account is in turn invested by the Credit Union or loaned to your fellow members.

What is a special account?

Special account — A special account in a bank is one created for a special or particular purpose, as distinguished from a general account, which is an account to which credits are added and against which checks are drawn in the ordinary course.