Share-Draft Account

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Share-Draft Account'

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.

RELATED TERMS
  1. Money Market Account

    An interest-bearing account that typically pays a higher interest ...
  2. Checking Account

    A transactional deposit account held at a financial institution ...
  3. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  4. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  5. Finance

    The science that describes the management, creation and study ...
  6. Negotiable Order of Withdrawal ...

    An interest-earning bank account with which the customer is permitted ...
Related Articles
  1. Demystification Of Bank Accounts
    Options & Futures

    Demystification Of Bank Accounts

  2. Are all bank accounts insured by the ...
    Investing

    Are all bank accounts insured by the ...

  3. How Wells Fargo Became The Biggest Bank ...
    Stock Analysis

    How Wells Fargo Became The Biggest Bank ...

  4. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center