Share-Draft Account

Share-Draft Account
Share-draft accounts were created under the Consumer Checking Account Equity Act of 1980. They allow credit-union members to access their share balances by writing drafts on their accounts. Share-draft accounts allow for an unlimited number of checks to be written, and one of their primary benefits is that they are secured with federal insurance. Interest earned on share-draft accounts is compounded quarterly.

These accounts are similar to negotiable order of withdrawal (NOW) accounts, which are basically interest-bearing savings accounts against which drafts can be written. However, share-draft accounts are offered by credit unions, whereas NOW accounts are bank products.

Investment dictionary. . 2012.

Look at other dictionaries:

  • share draft — 1. an interest bearing checking account in a credit union. 2. a check written against this account. * * * share draft, a draft ordering a credit union to pay someone from funds on deposit …   Useful english dictionary

  • share draft — 1. an interest bearing checking account in a credit union. 2. a check written against this account. * * * …   Universalium

  • National Credit Union Share Insurance Fund — Banking in the United States Monetary policy The Federal Reserve System Regulation Lending Credit card Deposit accounts Savings account Checking account Money market account Certificate of deposit …   Wikipedia

  • transaction account — A checking or similar account from which transfers can be made to third parties. Demand deposit accounts, negotiable order of withdrawal NOW accounts, automatic transfer service accounts ( ATS account) , and credit union share draft accounts are… …   Financial and business terms

  • Payable Through Draft — A draft that is payable through a specific bank. Payable through draft instruments draw money from the account of the issuer. Corporations use these instruments to pay bills, and insurance companies use them to pay claims. The bank s name is… …   Investment dictionary

  • M1 — Measure of the U.S. money stock that consists of currency held by the public, travelers checks, demand deposits and other checkable deposits including NOW ( negotiable order of withdrawal) and ATS (automatic transfer service ) account balances… …   Financial and business terms

  • ШЕЙР-ДРАФТ СЧЕТ — (англ. share draft account) чековый вклад в кредитных союзах, приносящий процент вкладчикам и дающий возможность выписывать чеки для оплаты …   Энциклопедический словарь экономики и права

  • "ШЕЙР-ДРАФТ СЧЕТ" — (англ. share draft account) чековый вклад в кредитных союзах, не только приносящий процент вкладчикам, но и дающий возможность выписывать чеки для оплаты. Райзберг Б.А., Лозовский Л.Ш., Стародубцева Е.Б.. Современный экономический словарь. 2 е… …   Экономический словарь

  • Cheque — A Canadian cheque …   Wikipedia

  • Money supply — Finance Financial markets Bond market …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.