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.

Credit unions refer to checking accounts as share draft accounts. While it might not affect how you use the account, share draft accounts are a form of ownership. This means you are a partial owner of the credit union, while checking account owners are customers of banks.

Opt in to receive important messages from Service Credit Union regarding account updates and general information about our products and services. Service CU wants to ensure you don't miss out on important account updates or general information regarding our products and services.

If you want higher deposit rates and don't need access to branches across the country, for example, you might prefer a credit union. If you want access to in-person services and don't mind lower interest rates, a bank might be more suitable.

A checking account is a bank account where you can deposit and withdraw your money when you want. It's the account you'll likely use to deposit paychecks, pay bills, get cash and transfer funds. Checking accounts usually offer a debit card to use online, at stores and at ATMs.

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.

You see, credit unions don't have customers. The people who have deposit accounts or loans at credit unions aren't customers. They're member-owners. They're owners because credit unions are cooperatives organized and operated for the financial well-being of all those that belong to the cooperative.

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.

Pacific Service CU does not use an automated calling service to notify you of issues with your account or to request personal information. However, we may contact you through an automated calling service when our state-of-the-art credit and debit card monitoring system detects a suspicious transaction.

How do you know if a credit union is legit? ›

You can tell if your credit union is federally insured by NCUA by searching for a credit union in Find a Credit Union (Opens new window). In addition, credit unions must display in their offices the official NCUA insurance sign.

Because credit unions are not-for-profit, they can offer members numerous benefits that can directly and indirectly build an individual's credit score.

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.

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.

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.

A checking account is a type of deposit account that individuals open at financial institutions for the purpose of withdrawing and depositing money. Also known as a transactional or demand account, a checking account is very liquid.