What is a share draft account?

A share draft account is a type of checking account offered by credit unions. It functions similarly to a traditional checking account at a bank, allowing account holders to write checks and access their funds through ATM withdrawals and debit card transactions.

However, share draft accounts also come with certain benefits specific to credit unions, such as lower fees and higher interest rates. Credit unions also often offer overdraft protection and free online bill pay for their share draft account holders.

Share draft accounts are typically subject to certain requirements, such as minimum balance or usage fees, and may have limitations on the number of transactions allowed per month. To open a share draft account, individuals must become a member of the credit union and follow the membership eligibility requirements.