Definition of share account

account offered by a credit union, paying earnings to its members as dividends rather than interest. The major forms of share accounts are regular share accounts, an interest bearing account similar to personal savings accounts at banks and savings institutions; share draft accounts, an interest bearing account permitting withdrawals or transfers by writing drafts against the account; money market accounts, often called money market share accounts and share certificate accounts, which are similar to term savings accounts. Credit union shares are subject to reserve requirements if they allow more than three telephone transfers or preauthorized transactions a month.