You probably know that credit unions operate almost in the same way as contemporary financial institutions such as banks and cooperative societies, they also offer savings and checking accounts, however, what you might not know is that various types of credit union savings accounts are available in credit unions. The knowledge of each type of credit union savings account available for opening helps you know the one that suits your plan and desires best even as you apply to start out as a member of the credit union.
- The traditional credit union savings account; is referred to as the normal savings account that almost everyone is accustomed to, this type of account also earns interest but cannot be compared to an investment vehicle or plan. This type of account has two types which are jumbo savings accounts and high-interest savings accounts.
- The money market: this is another type of credit union savings account, it differs from traditional savings accounts in interest rates, this type of account comes with high-interest rates, however, to qualify and avoid charges you may need a minimum of $1000 in the account.
- The joint savings account: this is a type of credit union savings account where the savings account is owned by two or more people.
- The club savings account: This club savings credit union account works with a specific target of desire in mind, such as going for a vacation or having a specific purchase target in mind, it helps save the money till a specific date when the returns or due dividends are sent to your account either checking or savings accounts. This type of credit union savings account has more interest than the traditional savings account.
- The reward savings accounts: this type of credit union savings account works in that it gives an incentive for every particular milestone of savings you hit, this type works better for people who need encouragement to reach a certain savings goal. The incentives can be a teaser that helps you save money and reach your target.
- The health savings account: This is another type that helps to sting out the bill of a medical payment, you will agree with me that sometimes paying medical bills can be expensive, however, this type of savings account helps to reduce that pressure. The requirement that is needed to open this type of account is enrolling in a health plan that has a high deductible.
- The college savings account: this type of credit union savings account has to do with savings that involve college expenses such as tuition, room, board, books, and other college materials.