A share account is a type of savings account offered by credit unions. It is the primary account that credit union members open to become part of the cooperative. When you open a share account, you become a member-owner of the credit union, holding a share of ownership in the institution.
The term “share” reflects the cooperative nature of credit unions, where members collectively own and govern the institution. Instead of being just a customer, you have a say in the credit union’s decisions, typically exercised through voting in board elections and participating in annual meetings.
Earnings in a share account are called “dividends,” emphasising the cooperative aspect of credit unions. These dividends represent your share of the credit union’s profits, which are shared among the member-owners.
A share account serves as a foundational step for accessing various financial services and benefits offered by the credit union. Additionally, it provides a secure place to save money, and deposits in share accounts are often insured up to a certain limit by the Financial Services Compensation Scheme (FSCS).
Overall, a share account in a credit union is not just a savings account; it symbolises membership and ownership in a cooperative financial institution where members work together for their mutual benefit and financial well-being.