What Is a Share Savings Account?

A share savings account is the foundational account you open when you become a member of a credit union like Ideal Credit Union. Unlike a bank savings account, this type of account represents your ownership in the institution. The share refers to your stake in the credit union itself. Ideal Credit Union is not just a place to store money, but a union you are a member of and have a share in.

Like a traditional savings account, a share savings account allows you to deposit funds and earn a return over time. But instead of earning interest, you receive dividends—a share of the credit union’s profits, returned to members. These accounts are insured by the National Credit Union Administration (NCUA) for up to $250,000, just like bank accounts are insured by the FDIC.

Opening a share savings account is typically easy and affordable. At Ideal Credit Union, we only require a small deposit to activate membership and access our full range of financial services.

Why Is It Called a “Share” Account?

The term share reflects the cooperative and community nature of credit unions. When you join Ideal Credit Union, you’re not just a customer; you become a member-owner. Your initial deposit into the share savings account acts as a representation of your share in the credit union.

This structure empowers you with more than just access to accounts and services. As a shareholder, you may vote in board elections and influence how the institution is managed. The language reminds members that their financial relationship is rooted in community ownership, not corporate profit.

Share Savings vs. Traditional Bank Savings: What’s the Difference?

While both account types help you save money and earn returns, several key differences set share savings accounts apart from traditional bank savings accounts:

Feature	Share Savings Account	Bank Savings Account
Institution Type	Credit Union (member-owned)	Bank (corporate, shareholder-owned)
Earnings	Dividends from credit union profits	Interest paid by the bank
Ownership	You are a partial owner	You are a customer
Insurance	NCUA-insured up to $250,000	FDIC-insured up to $250,000
Fee Structure	Typically, lower or no fees	Often includes maintenance and transaction fees
Access	Mobile, online, branch and shared networks	Online, mobile and bank-only branches

Credit unions prioritize people over profit. That often results in lower fees, competitive dividends and stronger community ties. And for Ideal Credit Union members, every dollar saved goes further, both for your wallet and for the community.

How Credit Union Accounts Work 

While the core functions of deposits, withdrawals, bill payments and debit card use are the same as those of bank checking accounts, share draft accounts are the sign that you are a member and owner rather than a customer.

When you open an account at Ideal Credit Union, you gain access to:

• Debit cards with great benefits
• Online and mobile banking
• Bill pay and direct deposit
• eStatements and paper check options
  
  

You can also link your checking account to a share savings account for easy internal transfers. Most importantly, the account is part of your ownership in the credit union.

Benefits of Credit Union Membership and Ownership

Joining Ideal Credit Union means more than banking. It means membership in a financial cooperative. Unlike traditional banks, where profits go to outside shareholders, Ideal Credit Union operates for the benefit of its members, who are also owners.

Membership benefits include:

• Voting rights in board elections
• Access to lower loan rates and higher savings dividends
• Fewer and lower fees across all accounts than many banks
• Participation in community-oriented programs and education
• Personalized service that focuses on the financial well-being of our members, instead of making a profit at your expense
  
  

Your share savings account makes you a member. That gives you influence, better financial terms and a sense of belonging within a community-focused institution.

How Dividends Work Instead of Interest

In a credit union, you earn dividends instead of interest. Both represent a return on your money, but dividends have a cooperative meaning: they come from the credit union’s earnings, not a fixed rate determined by a bank’s profitability model.

Here’s how it works:

• Credit union profits (after operating expenses) are returned to members in the form of dividends
• These are typically credited monthly or quarterly to your share savings and checking accounts
• Dividend rates can often outperform bank interest rates

Dividends reflect the union’s commitment to reinvesting in its members, not external stakeholders

While some online banks may offer higher promotional rates to start with, credit union dividends are part of a broader system of value and transparency and continue throughout your membership.

Understanding NCUA Insurance and Deposit Safety

In the same way that bank savings and checking accounts are protected by the FDIC, credit union deposits are insured by the National Credit Union Administration (NCUA). The NCUA provides insurance through its Share Insurance Fund, guaranteeing member deposits at Ideal Credit Union.

Key facts:

• Deposits are insured up to $250,000 per individual, per institution, per ownership category
• This includes share savings, share draft (checking) and share certificates (similar to CDs)
• Joint accounts are insured up to $250,000 per co-owner
• NCUA insurance is backed by the full faith and credit of the U.S. government
  
  

With Ideal Credit Union, your money is safe and secure. You receive federal protection and help your fellow members by doing business with a community-centered institution.

Pros of Share Savings Accounts

Pros:

• Member Ownership: Your account represents a financial stake in the institution, not just a place to put your money
• Dividends Instead of Interest: Profits are returned to you in the form of dividends, which often outperform bank interest rates
• Low Fees: Ideal Credit Union prides itself on typically having fewer and smaller fees than most banks
• Community-Centered Service: Ideal Credit Union prioritizes our members, offering better service and financial education
• NCUA Insurance: Your deposits are federally insured up to $250,000, just like FDIC protection at banks

Share savings accounts are a strong choice for savers looking for long-term value and personalized financial service in a community-centered institution.

Choose a Credit Union Account That Works for You

If you're seeking more than just a bank, a share savings account at Ideal Credit Union offers a smarter, more cooperative approach to personal finance. With low rates, dividend-based returns and member-focused benefits, you’re gaining a stake in a community-centered financial institution.

Whether you’re saving for an emergency fund, a vacation or long-term goals, the share savings account is a powerful first step. And with Ideal Credit Union’s easy online application, competitive dividend rates and mobile banking, there’s no need to settle for worse service at a traditional bank when you are eligible to bank with Ideal Credit Union.

 Visit Ideal Credit Union to explore your options and open your account today to start living your Ideal Life!