What is a primary share account at a credit union?

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A primary share account at a credit union is a fundamental financial tool that serves as the foundation for membership and participation in a credit union. In this article, we will explore what a primary share account is, how it works, and its significance in the credit union system.

What is a Primary Share Account?

A primary share account, also known as a share savings account, is the basic account offered by credit unions to their members. It is similar to a regular savings account at a traditional bank. When an individual joins a credit union, they are required to open a primary share account, which establishes their membership in the credit union.

How Does a Primary Share Account Work?

Opening a primary share account typically involves a minimum deposit, which can vary depending on the credit union. This initial deposit represents the member’s ownership share in the credit union. The member’s funds are pooled together with other members’ deposits, forming the credit union’s collective assets.

The primary share account often offers competitive interest rates, encouraging members to save money while earning a return on their deposits. The interest rates may be higher than those offered by traditional banks, as credit unions are not-for-profit organizations that prioritize the best interests of their members.

Members can access their primary share account through various channels, including online banking, mobile apps, ATMs, and in-person visits to the credit union branch. They can make deposits, withdrawals, and transfers, allowing for easy management of their funds.

Significance of a Primary Share Account

The primary share account holds great significance within the credit union system. It represents the member’s ownership stake in the credit union and grants them certain rights and privileges. These may include voting rights in the credit union’s decision-making processes, the ability to run for a position on the credit union’s board of directors, and access to a range of financial products and services offered by the credit union.

Moreover, the primary share account plays a crucial role in supporting the credit union’s mission of providing affordable financial services to its members. The funds deposited in primary share accounts contribute to the credit union’s liquidity, allowing it to provide loans and other financial services to members at favorable rates.


In summary, a primary share account at a credit union is the basic savings account that establishes membership and ownership in the credit union. It offers competitive interest rates and provides members with access to a range of financial services. By opening a primary share account, individuals become part of a cooperative financial institution that prioritizes their financial well-being.


– creditunion.com
– ncua.gov
– mycreditunion.gov