A share account is the type of account in credit unions which can be either savings or checking. Opening a share account is the way to become the owner/member and enjoy all features/ services that a credit union offer. A share saving account pays dividends and a share checking account is convenient for daily spending.
-Share savings account
A share savings account is essential before you can open a checking account. Normally, a share savings account pays interests, which means you are able to earn interest for the money you have deposited into your share savings account of a credit union. The amount of interest you are able to earn from your savings account depend on the interest rate of your credit union and it can be different comparing to other credit unions. People are encouraged to do some research and comparison among different credit unions and the interest rates they offer in order to choose the one that best suits them.
-Share checking account
A share checking account is also known as a share draft account. People use this account for daily spending such as pay bill or make purchase. A share checking account usually associated with a debit card which allows people to make withdrawals through ATMs. It is a liquid account, so you will not be penalized for frequent transfer and withdrawals. Unlike putting money into a savings account, you may not able to earn interests from a share checking account. However, there are some credit unions do offer their members a reward checking account which pays interests. For example, the Consumers Credit Union and the Element Financial Credit Union offer an option for their members to open a reward checking account to earn interest.