What Is a Share Savings Account?
A share savings account is the cornerstone account you open when you become a valued member of a credit union like Latitude 32 Credit Union. Unlike a standard bank savings account, this type of account signifies your ownership in the credit union itself. The term “share” literally refers to your stake in the credit union. Latitude 32 Credit Union is more than just a place to keep your money; it’s a cooperative where you are a member and hold a share in its collective success.
Similar to a traditional savings account, a share savings account allows you to deposit funds and watch your money grow. However, instead of earning interest, you receive dividends. These dividends represent a portion of the credit union’s earnings, returned directly to its member-owners. Your deposits are fully protected by the National Credit Union Administration (NCUA) for up to $250,000, offering the same federal insurance as bank accounts insured by the FDIC.
Opening a share savings account with Latitude 32 is designed to be easy and accessible. We typically require only a small initial deposit to activate your membership and unlock access to our full suite of financial services.
Why Is It Called a “Share” Account?
The term “share” is used to encapsulate the cooperative and community-focused nature that defines credit unions. When you join Latitude 32 Credit Union, you’re not merely a customer; you become a genuine member-owner. Your initial deposit into your share savings account symbolizes your proportional ownership in the credit union.
This unique structure empowers you with more than just access to accounts and services. As a shareholder, you typically have the right to vote in board elections, giving you a voice in how the institution is managed. This fundamental principle reminds every member that their financial relationship with Latitude 32 is rooted in shared ownership and community benefit, rather than prioritizing corporate profit.
Share Savings vs. Traditional Bank Savings: What’s the Difference?
While both account types serve the purpose of saving money and helping it grow, several key distinctions set Latitude 32’s share savings accounts apart from traditional bank savings accounts:
| Feature | Share Savings Account (Latitude 32 CU) | Bank Savings Account |
| Institution Type | Credit Union (member-owned, cooperative) | Bank (corporate, not member-owned) |
| Earnings | Dividends from credit union profits | Typically lower interest, paid by the bank |
| Ownership | You are a member-owner | You are a customer |
| Insurance | NCUA-insured up to $250,000 | FDIC-insured up to $250,000 |
| Fee Structure | Usually lower or no fees | Often includes various fees |
Credit unions, like Latitude 32, inherently prioritize our members’ well-being over generating profits for external shareholders. This philosophy and motivational alignment between you and your financial institution usually translates into lower fees, more competitive dividend rates on savings, and deeper, more personalized community connections. For Latitude 32 Credit Union members, every dollar saved works harder, both for your personal financial growth and for the vibrant Charleston community we serve.
How Credit Union Accounts Work
While the core functions of depositing, withdrawing, paying bills, and using debit cards operate very similarly to commercial bank checking accounts, your share draft (checking) account at a credit union signifies your status as a member and owner, rather than just a customer on which banks expect to make a profit.
When you open an account with Latitude 32 Credit Union, you gain access to a comprehensive suite of modern banking services designed for your convenience:
- Easy bill pay and direct deposit options
- Debit cards and their corresponding benefits
- Choice of eStatements for digital access
- Checks
- Convenient online and mobile banking
You can also have linked checking and share savings accounts for quick and easy internal transfers.
Benefits of Credit Union Membership and Ownership
Joining Latitude 32 Credit Union means far more than simply opening a bank account. It signifies membership in a thriving financial cooperative. Unlike traditional banks, where profits are obtained using customer funds and distributed to outside shareholders, Latitude 32 Credit Union operates solely for the benefit of its member-owners.
Key benefits of becoming a Latitude 32 member include:
- Service that genuinely focuses on your financial well-being and success, rather than maximizing profits at your expense.
- Access to lower loan rates and potentially higher savings dividends compared to many traditional banks.
- Voting rights in board elections, giving you a voice in your financial institution’s direction.
- Participation in our community-oriented programs and financial education initiatives, strengthening our local Charleston community.
- Fewer and lower fees across all accounts, directly benefiting your wallet.
Your share savings account isn’t just an account; it’s your entry point to being a member-owner. This status grants you influence, more favorable financial terms, and a strong sense of belonging thanks to our dedication to Charleston County.
How Dividends Work Instead of Interest
At a credit union like Latitude 32, you earn dividends on your savings instead of interest. While both represent a return on your money, dividends carry a distinct cooperative meaning: they are derived from the credit union’s earnings, not a fixed rate determined by a bank’s profit model for external shareholders.
Here’s how it works at Latitude 32:
- Credit union profits (after covering operating expenses and reserves) are returned to members in the form of dividends.
- These are typically credited to your share savings and checking accounts on a monthly or quarterly basis.
- Dividend rates at credit unions can often be competitive with, and frequently even outperform, traditional bank interest rates.
Dividends reflect Latitude 32’s unwavering commitment to reinvesting in its members and the Charleston community, rather than funneling earnings to external stakeholders. While some online banks might offer higher promotional rates initially, credit union dividends are part of a broader, more transparent system of value that benefits you throughout your entire membership.
Understanding NCUA Insurance and Deposit Safety
Just as bank savings and checking accounts are protected by the FDIC, all deposits at Latitude 32 Credit Union are federally insured by the National Credit Union Administration (NCUA). The NCUA provides this critical protection through its Share Insurance Fund, guaranteeing member deposits.
Key facts about NCUA insurance:
- Your deposits are insured up to $250,000 per individual, per institution, per ownership category.
- Joint accounts are insured up to $250,000 per co-owner, providing even broader protection for shared funds.
- This comprehensive coverage includes share savings accounts, share draft (checking) accounts, and share certificates (similar to bank CDs).
- Importantly, NCUA insurance is backed by the full faith and credit of the U.S. government, ensuring your money is secure.
With Latitude 32 Credit Union, your money is not only safe and secure under federal protection, but by banking with us, you also contribute to the well-being of your fellow members and the Charleston-area community we are all a part of.
Benefits of Having a Credit Union Share Account
Here’s a summary of the key advantages of a share savings account with Latitude 32 Credit Union:
- Member Ownership: Your account represents a direct financial stake in our cooperative institution, making you more than just a customer.
- Dividends Instead of Interest: Profits are returned to you in the form of dividends, which often offer better returns than commercial bank interest rates.
- Low Fees: Latitude 32 Credit Union is committed to having fewer and lower fees than many traditional banks, keeping more money in your pocket.
- Community-Centered Service: We prioritize our members and the local Charleston community, offering personalized service, competitive rates, and valuable financial education.
- NCUA Insurance: Your deposits are federally insured up to $250,000, providing the same robust protection as FDIC insurance at banks.
Share savings accounts at Latitude 32 Credit Union are an excellent choice for savers in Charleston County seeking long-term value, personalized financial service, and a community-centered institution.
Choose a Credit Union Account That Works for You
If you’re seeking a financial partner that offers more than just traditional banking, a share savings account at Latitude 32 Credit Union provides a smarter, more cooperative approach to managing your personal finances. With competitive rates, dividend-based returns, and member-focused benefits, you’re gaining a genuine stake in a truly community-centered financial institution right here in Charleston County.
Whether you’re saving for an emergency fund, a dream vacation, or long-term financial goals, establishing a share savings account is a powerful and foundational first step. And with Latitude 32 Credit Union’s easy online application process, competitive dividend rates, and convenient mobile banking, there’s no need to settle for less when you’re eligible to bank with us.
Visit Latitude 32 Credit Union to explore your options and open your account today – let us help you navigate your financial journey and sail smoothly into a brighter tomorrow!