26. Credit unions: share accounts (savings accounts).

Saving accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return.

A savings account is likely the simplest type of account available to consumers. It allows consumers to store excess cash in a secure location (an insured credit union) all while earning interest on the balance.

Cash stored in a savings account is less liquid, or accessible, than in a checking account but more so than cash stored in a CD (Certificate of Deposit).

Savings accounts allow you to keep your money in a safe place while it earns a small amount of interest each month. These accounts usually require either a low minimum balance, like $25, or may require no minimum balance at all.

Besides the fact that you will be less likely to spendit, putting your money in a savings account is safer because it is insured. If your home is robbed or burns down, your money may be lost forever. Banks andcredit unions, on the other hand, keep your money in a locked and fireproof safe.

Some credit unions offer a fixed rate of interest on savings, but most give you a yearly pay-out called a ‘dividend’. The dividend is the way in which the credit union shares its profits with its members and the amount you receive, if any, will vary depending on how much profit the credit union has made in the year.

All credit unions offer basic savings accounts and loans. Some also offer additional investment options, such as ISAs.

Credit unions tend to offer higher rates than banks for share accounts (their term for a basic savings account). You may need to meet certain membership requirements to join, however.

27. Credit unions: share draft accounts (checking accounts).

A share draft account is a checking account at a credit union. Checking accounts at the credit union are called Share Draft Accounts. There is NO minimum balance, NO per check charge and NO service charges. You do pay for your own checks and any additional services you may require (for example: stop payments, traces or check copies). All checks ordered through the credit union have duplicates for your records and originals can be obtained, per your request, for a fee.

A Share Draft Account is a transaction account which works in the same manner as a bank checking account. Applications for share draft accounts are available through a Financial Services Representative or teller. An initial deposit is required by members who do not have Direct Deposit to cover the first order of drafts. No other minimum deposit is required at any other time.

Share Drafts offer you many benefits over traditional checks including:

• Higher Dividends - Share Draft Accounts allow you to earn money by paying dividends. Since share drafts have no monthly service fees or minimum balance requirements, your entire balance is working for you. For current rate information, please see our complete rate schedule.

• Lower Fees - A Share Draft Account allows for the same conveniences of a checking account but doesn't have the monthly fees of many bank checking accounts.

• No minimum balance requirements - Share Drafts do not require you to keep a minimum balance in your share draft account.

• Overdraft Protection - Overdraft Protection is available to qualified members up to $1,000.00. Since O/D is a line-of-credit, you must apply and be approved by lending.

• Direct Deposit - You may elect to have your entire paycheck directly deposited into your share draft account.

• Truncation - Truncation means your original copy of the share draft is not returned to you with your statement. The drafts are microfilmed and destroyed. You have an automatic carbonless copy of each draft you write to simplify recordkeeping. If a Micro Copy of a draft is ever needed, one can be ordered for a nominal charge.