If you live in New Mexico, you may want to establish relationship with one of the credit unions. As far as financial functions are concerned, banks and credit unions in New Mexico often do the same things, but the terminologies used are quite different. An account with a credit union will be called a share account, while a traditional bank account is called a savings account. In this post, let’s review what it means to open a share account in New Mexico with credit unions.
How are share accounts different?
In most ways, share accounts are same as checking accounts that banks offer, except that in this case, it just means your share in the organization. In other words, when you open a share account, you are actually seeking a financial stake in the credit union, and dividends are usually calculated every day and deposited into the account at the end of the month. There are varied kinds of share accounts that you can consider in New Mexico. Credit unions offer options like draft share account and express checking account.
A draft share account can be used for cash withdrawals as required, and you can also make payments online. There is usually some restriction on the number of transactions that can be made in a month. Express checking account, on the other hand, doesn’t require a monthly balance or an amount to open the account.
Why open accounts with a credit union?
For credit unions, you aren’t just another customer, but a part owner of the organization, and they run for people like you. Credit unions are also more forgiving as far as overdrafts are concerned, and you are likely to get varied options in share accounts. If you have an express checking account, you wouldn’t have to pay for monthly fees and other charges, so you can save more on credit unions. Interest rates can be better, and dividends will be deposited every month, which is a big advance. There is no trust issue as many may believe with credit unions, and that remains one of their biggest advantages.
You can check for credit unions in New Mexico and find more on the account options they offer. There is no harm in asking for details when you check for accounts, and make sure that you are aware of what you can do and cannot do with your account on a regular basis.