Share account.

In plain English

A share account is what a credit union calls a basic savings account. The word share comes from the fact that a credit union is owned by its members, so your deposit is treated as a share of ownership, not just a balance. It works like any savings account: you deposit money, it may earn interest (which credit unions call dividends), and you can withdraw it. Most credit unions require a small minimum share deposit, often a modest round amount like $5 or $25 depending on the credit union, to open membership.

01Why it matters

Knowing share account just means savings account keeps the unfamiliar wording from making a credit union feel more complicated than it is. The ownership angle also means you get a vote in how the institution is run, unlike at a bank.

02The math, step by step

You join a credit union by opening a share account with a small minimum deposit, such as $5 or $25 depending on the credit union. That deposit makes you a member-owner. Your savings sit in the share account and earn dividends instead of interest, though the practical effect on your balance is the same. Deposits are insured by the NCUA up to $250,000 per depositor, per insured credit union, per ownership category, which is the statutory limit set in federal law.

03What this is NOT

04Receipts

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