What Is A Share Savings Account (2023)

When you decide to put money aside for a future day or purpose, then you will probably be looking at safe and stable accounts to hold that money.

This is true for almost anyone, and the last thing you would want is to go to that savings account and find the money is gone. A share savings account could be a good fit under the right circumstances.

What Is A Share Savings Account?
What Is A Share Savings Account (2023) 2

While we trust a lot of different large firms to hold tightly onto our money, and we trust that it may be insured for a significant amount, there are other newer or less well-known accounts that we may not trust as much or see as such an excellent place to store our wealth.

One of these kinds of accounts is a share savings account. While they have been around for a while, few people know exactly what they are or whether they can trust them.

Today, we seek to illuminate the light over share savings accounts to aid you in deciding whether to use one.

What Is A Share Savings Account?

A share account is basically the same as any other savings or checking account, except that it was created by credit unions instead of a large bank.

You can have two kinds of share accounts at a credit union: share savings account or a share checking account.

These accounts act almost identically to the savings accounts you would get from a large, commercial bank, you can put money in for savings and withdraw it at your leisure.

Like other banks, you get a routing number, account number, checkbook, and interest on the money you keep inside this account.

The National Credit Union Administration (NCUA) is responsible for regulating federal credit unions. The money you keep in a savings account with a credit union is often insured at the federal or state level, and usually, this is insured up to $250,000.

The National Credit Union Share Insurance Fund (NCUSIF) insures the account holders of all federal credit unions and some of the state-chartered credit unions. The (NCUSIF) is managed by the (NCUA).

The interest offered as well varies typically from union to union. They also often call these interest rates dividends, but this is due to the nature of how a credit union is structured.

What Are Credit Unions?

Credit unions are an alternative to corporate and commercial banks for those not in the know.

These are a type of financial institution that, while similar to a commercial bank, is member-owned and is a non-profit cooperative between these members.

This means that anyone with an account with a credit union is a member, and the owners of the credit union and they elect the directors of the credit union based on the principle of one member, one vote.

This means that no matter how much you have invested, you only receive one vote.

The most significant difference between a credit union and a commercial bank is their goal or purpose. Banks are businesses that are generally seeking to make a profit.

However, credit unions are not trying to make a profit. Instead, they are community-run enterprises that are not trying to get rich to lend money responsibly and keep money safe for their members.

While it may not seem like much, most ordinary people trust credit unions far more than other banks, with 60% of the general public having trust in a credit union compared to 30% with regular banks.

That is a substantial step-up and shows how much of a better experience people have with these organizations.

This is also true with small business owners, who tend to have an 80% satisfaction rate for services rendered by credit unions.

Why Is It Called A Share Account?

This is the thing that puzzles people the most about a credit union’s savings account. Usually, when we talk about shares, we are talking about trading stocks and shares in companies.

While this is the idea with credit union accounts, it is not the same, and there are some significant differences.

The reason that a credit union account is called a share account is to do with the structure of a credit union itself.

Since these are not private institutions but instead community-owned and run endeavors, the share comes from the fact that once you get an account with a credit union, you are then a member and part owner of the entire union.

As long as you hold that account, you are one of the driving forces with the credit union, and you get to decide its course.

In fact, without these accounts, you would not own any part of this credit union at all.

Depending on the credit union, you may have to open a couple of accounts with them, just one, or a particular kind of account, before it is decided that you are a member.

However, once this has happened, you will gain access to all the perks and deals that other members have, which can be a lot better and more beneficial than many commercial banks.

What Are The Types Of Savings Accounts I Can Get With A Credit Union?

Generally, there are only three types of savings accounts you can get with a credit union:

  • Share savings accounts: These are your typical savings accounts, and they are generally the most flexible of the three of them. You can withdraw or add money as you like, which is a good choice for people who need an emergency savings account.
  • Certificates of Deposit: These accounts require a minimum deposit amount; once you have deposited into them, you need to let that money vest. Once it has, you can withdraw the money with interest, but if you take it out too early, you may face a penalty charge.
  • Money Market Accounts are a combination of savings accounts and Certificates of Deposit. You can only do a few monthly withdrawals from these accounts, but their interest rate is higher than that of Certificates of Deposit.


A share savings account is the same as a regular savings account; it is just owned by a credit union instead.

The name change comes from the credit union’s structure rather than from some risky financial business.

Andre Flowers
Andre Flowers

Hello, my name is Andre Flowers and I have been a Licensed Real Estate Professional for over 24 years. I also carry several certifications, including: Certified Distressed Property Expert, Certified Global Business Professional, Certified Credit Repair Specialist.

As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.

Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.

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