Regular Shares

A regular share account is essentially a savings account. Generally in FCUs, each credit union member has a regular share account where the member’s par value share is maintained. However, a member is not required to have a regular share account to establish membership.

A share, for purposes of establishing membership in an FCU, may be held in an account other than a regular share account, such as a share certificate or share draft account. For more information, see legal opinion letter 92-0828, Share Accounts. The minimum account balance (or par value share) is established by the credit union’s board of directors in the credit union bylaws, per NCUA regulation part 701, Appendix A, Federal credit union Bylaws.

FCUA § 1763, Dividends, requires a federal credit union’s board of directors to set dividend rates for all share types offered by the credit union. The dividend rate and timing of payment established by the board of directors may differ depending on the share type.

FISCU membership is determined by state laws and bylaws. A FISCU must declare dividends on shares in accordance with applicable state bylaws.

Regular share accounts are part of a credit union’s core deposits, which also include share draft accounts. Typically, core deposits are less volatile than other types of share accounts, as they tend to be less sensitive to changes in short-term interest rates.

A credit union may set a limit on the number of transactions allowed for a regular share account. It may also assess a fee if the account balance falls below a certain level. A credit union must disclose these restrictions and fees to members as required by NCUA regulation part 707, Truth in Savings.

A credit union may offer a variety of share account types depending on the needs of its members. In addition to the share account types discussed in this chapter, credit unions may also offer club accounts, which allow members to save for a specific purpose (for example, to pay for a vacation or Christmas gifts). The dividend rates for other share account types may differ from regular share dividend rates, per FCUA § 1763, Dividends.

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