Credit Union Interest Paying Checking Account

B

The account offered by credit unions that is similar to interest paying checking accounts offered by other financial institutions is known as a "share draft account."

A share draft account is a type of checking account that is offered by credit unions. It operates like a traditional checking account, but with a few differences. Firstly, it is called a "share" draft account because credit unions are member-owned organizations, and the account represents a share of ownership in the credit union. Secondly, share draft accounts typically offer higher interest rates than traditional checking accounts, making them a more attractive option for individuals who want to earn interest on their checking account balances.

Credit unions are different from traditional banks in that they are member-owned and not-for-profit organizations. This means that the members of the credit union have a say in how the organization is run and that any profits are returned to the members in the form of better rates and services. Because credit unions are not-for-profit, they are able to offer more competitive rates on their financial products, including share draft accounts.

Deposit insurance is a type of insurance that protects the depositors of a financial institution in case the institution fails. It is a safety net that ensures that depositors will not lose their money if the financial institution goes bankrupt or is otherwise unable to meet its obligations.

An internet bank is a type of bank that operates primarily online, with no physical branches. Internet banks offer many of the same products and services as traditional banks, but they often have lower fees and higher interest rates due to their lower overhead costs.

Checking and savings accounts are standard types of accounts offered by banks and credit unions. Checking accounts are used for day-to-day transactions, while savings accounts are used for saving money and earning interest on the balance.