Checking Accounts - Service Federal Credit Union (2024)

FAQs

What are checking accounts at credit unions called? ›

If you use a credit union, you are the member of a nonprofit cooperative. Often, savings accounts are called share accounts, while checking accounts may be called share drafts. Banks may offer more diverse products and services to fit the needs of many different customers.

Hence, accounts at credit unions are called “shares,” representing the members' partial ownership in the credit union. Meanwhile, “draft” is just another term for a check. A share draft account, then, is an account that you can write checks against, which also admits partial ownership in the credit union.

Lower fees: Because credit unions are not-for-profit, they typically charge lower fees than banks. Higher savings rates: On average, you'll find better interest rates at credit unions than banks, though some high-yield accounts at banks rank at the top of the industry.

Service Credit Union operates 37 branches in New Hampshire, Massachusetts, and North Dakota; and 14 branches serving American military personnel stationed in Germany. Service Credit Union offers deposit accounts, including checking, savings, and money market; and lending products, including auto loans and credit cards.

$4.95 or $0

For Preferred Rewards members in the Gold, Platinum, or Platinum Honors tiers, the monthly maintenance fee waiver applies to the first 4 checking and 4 savings accounts. The monthly maintenance fee waiver is unlimited for clients in the Diamond or Diamond Honors tiers.

A checking account is a bank account that's used mainly for transactions. In fact, the technical term for a checking account is a "transaction account." The owner can usually withdraw from or deposit money into a checking account at any time. When you have a checking account, you can get a checkbook to write checks.

For this reason, the same people that are considered customers at a bank would be considered a member or member-owner at a credit union. It's one more way that the credit union difference shines through.

What Are Account Nicknames? Account nicknames are a way to easily identify and personalize your accounts in Online Banking. Using this feature is especially helpful if you have multiple checking or savings accounts, credit cards, or other types of loans.

Weaknesses of Credit Unions

Membership is restricted. The membership of a credit union is restricted to a specific community, most often a religion, profession, or geographic location. For a member to be eligible to join a credit union, they must belong to a group listed in the credit union's charter.

What is a disadvantage to using a credit union? ›

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Credit Unions are the only democratically run financial institution. A federal credit union is member-owned and controlled. Member's interests are represented by a volunteer board of directors drawn from the membership and elected by the membership.

Navy Federal Credit Union, State Employees' Credit Union and Pentagon Federal Credit Union are the three largest credit unions by total assets, per the NCUA.

National Credit Union Administration (NCUA) credit unions had five conservatorships/liquidations in 2023, and one so far in 2024. Similarly, there were five Federal Deposit Insurance Corp. (FDIC) bank failures in 2023 and one bank failure so far this year.

A demand deposit account is just a different term for a checking account. The difference between a demand deposit account (or checking account) and a negotiable order of withdrawal account is the amount of notice you need to give to the bank or credit union before making a withdrawal.

Regular and Money Market accounts, Certificates, and other plans available. Most credit unions offer at least one of the following accounts: free checking, prime-time checking, or interest-bearing checking. A wide variety of loan types including personal, auto, secured, home improvement, mortgage and credit cards.

Bottom Line. Since an asset is cash or something that can be converted to cash, a checking account is considered an asset as long as it has a positive value. If your checking account is overdrawn, you owe your bank or credit union money, which makes it a liability.