Share Savings Accounts
A share savings account is an essential account at a credit union. These accounts pay interest on your savings, providing a safe place for you to store cash. Plus, opening a share account is necessary to establish your membership in the credit union, which enables you to use other products like loans, checking accounts, and more.
Interest earnings: Credit unions typically pay interest on your deposits in a share savings account. Depending on interest rates in general (and how much the credit union wants to compete for new deposits), the rate you earn might be high or low. Still, every little bit helps. If
you want to earn more and you’re willing to live with some restrictions, you can ask if the credit union offers certificates of deposit (CDs) or money market accounts with higher rates.
Access to funds: You can withdraw funds from a share savings account any time you want, but there are restrictions on certain types of withdrawals. If you use an ATM, visit the credit union in person (including shared branching locations at other credit unions), or have checks mailed to you, you can withdraw as frequently as you want. However, a savings account is not for everyday spending. Federal law (Regulation D) limits certain transfers out of a savings account to six per month. Limited withdrawals include:
- Checks you write on the account (but not checks payable to you from the credit union)
- Spending with a debit card
- Online bill payment and ACH payments
- Transfers to your checking account