Share. Share deposit means a balance that is established and maintained by a person at a credit union that confers membership rights to that person.
A share-draft account is a version of a checking account, except it is offered by a credit union instead of a bank. … They do not exist to make a profit but rather to benefit the account holders. When you deposit money into a credit union share-draft account, you’re technically buying shares in that credit union.
A share account at a credit union is the equivalent of a bank’s savings or checking account and refers to the depositor’s ownership stake. Many (but not all) share accounts are insured for deposits up to $250,000. Share accounts can be used as collateral for a loan.
To deal with your immediate question, Rule 38 of the Standard Rules governs the withdrawal of shares. It clearly states that if a member of the Credit Union seeks to withdraw shares at a time where there is an outstanding liability, the withdrawal shall not be permitted.
What is a withdrawal transfer fee?
So when you start to use your savings account for multiple transactions there is a penalty applied, aka the withdrawal fee. Plus, if you are habitual in exceeding your six allowed transactions every month, your financial institution is allowed to close your savings account or convert it into a checking account.
Likewise, share drafts are the equivalent of bank checks. … Shares represent partial ownership in a credit union, and credit union members (shareholders) write drafts (checks) as a way to access the value of their partial ownership (shares).
How does a person access funds deposited into a checking account?
To deposit funds, account-holders can use automated teller machines (ATMs), direct deposit, and over-the-counter deposits. To access their funds, they can write checks, use ATMs or use electronic debit or credit cards connected to their accounts.
Credit unions refer to checking accounts as share draft accounts. While it might not affect how you use the account, share draft accounts are a form of ownership. This means you are a partial owner of the credit union, while checking account owners are customers of banks.
A regular share account is a savings account to which a credit union member deposits cash and, as a result, establishes ownership in a credit union. Based on this account, the credit union pays the account’s owner dividends that are compounded quarterly.
In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. … A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.
Unlike most other financial institutions, credit unions do not issue shares or pay dividends to outside shareholders. … Each Credit Union member has equal ownership and one vote – regardless of how much money a member has on shares or deposits. At a Credit Union, every customer is both a member and an owner.