Savings Accounts

Basic Savings Account

Basic Savings Accounts typically have a very low or no minimum balance requirement and no deposit or withdrawal limitations. Basic Savings earn interest at a lower rate than other savings accounts.

A credit union’s basic savings account is called a Share Savings Account because the account shows ownership in the credit union. Credit union members must maintain a share account in order to use the products and services offered. The membership ends when the share account is closed.

Money Market Savings Accounts

Money Market Savings Accounts are interest-bearing savings accounts that have higher dividend rates, and therefore a larger minimum balance requirement.

These accounts are great for saving because unlike Certificates of Deposit, you can make deposits and withdrawals while still earning higher interest.

However, Money Market Savings Accounts do have some withdrawal limitations, such as minimum withdrawal amounts and a limit on the number of withdrawals allowed per month.

Club Savings Accounts

Club Savings Accounts are interest-bearing savings accounts where you can save for specific events, such as vacation or Christmas. While you can make unlimited deposits into these accounts, your money is fixed to stay in the account until a certain date (ex: a Christmas Club may pay out September 30). Early withdrawals may be permitted with penalties.

Certificates of Deposit (CDs)*

Certificates of Deposit earn the highest dividend rate because your funds are deposited for a fixed period of time. Most financial institutions will offer tiered rates based on a range of required minimum balances. The rate that you earn depends on the amount of your opening deposit and the term length. Additional deposits cannot be made on a Certificate of Deposit.

*Credit Unions call this product “Share Certificates” or “Certificates”

Individual Retirement Accounts (IRAs)

IRAs are savings accounts with tax advantages authorized by the Federal government. While most IRAs serve the purpose of saving for retirement, Coverdell Education Savings Accounts also fall into the IRA category. Each type of IRA has its own set of rules and restrictions about who can contribute, how much can be contributed, when withdrawals may be made, etc.

Detailed information about Traditional and Roth IRAs is available from the IRS’s IRA Online Resource Guide. The IRS also provides information about the Coverdell Education Savings Account.