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Savings Details

How do I maintain my membership/ownership as a shareholder?
The word “share” is used when referring to savings accounts because as a member, you are an owner. Your savings or “shares” represent your ownership in MembersOwn Credit Union.

You must have a share savings account open, where your $5 ownership share resides, before any other services can be offered. To remain a member, you must maintain a $5 minimum balance within your share savings account.

Are my savings insured?
Your savings are federally insured by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States Government, just like the FDIC. NCUA insures accounts up to at least $250,000. IRA accounts are insured separately up to $250,000.

What is the difference between dividend rate, APY and APYE?
While all three terms relate to savings accounts (APR, annual percentage rate, applies to loans) each has a different meaning. Dividend rate is the declared rate paid on an account without regard to compounding. APY (annual percentage yield) reflects the total amount of dividends paid on an account based on the dividend rate and frequency of compounding over a 365-day period for share savings and checking accounts or for the term of a share certificate. APYE (annual percentage yield earned) reflects the total amount of dividends actually earned for the dividend period stated as a percent of the actual average daily balance in the account. The APYE is affected by the deposits and withdrawals from the account and may be different than the APY.

What is “average daily balance”?
The average daily balance is calculated by adding the balance in the account at the end of each day in the dividend period and divided by the number of days.

What is compounding?
Compounding occurs when dividends are paid on previously paid dividends. For example, if you deposit $100 and a dividend of $1 is paid (added) to your account, the next time dividends are paid, we use the original $100 plus the $1 dividend paid to calculate the new dividend amount. MembersOwn Credit Union pays dividends monthly.

Why is the interest paid to my shares called dividends?
As a member/owner of MembersOwn, your shares are your “investment” in the credit union. Therefore you receive a dividend on your “investment”/savings accounts. Although you receive dividends, federal regulation requires the credit union report dividends as interest when submitting the information to the IRS.

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