Throughout life’s journey, St. Thomas Federal Credit Union is here to help you reach your financial goals. Money 101 is our ongoing education series—built for the people of St. Thomas and the Virgin Islands—to show practical ways to get the most out of your money so you can get the most out of life.
Share Draft (Checking) vs. Share (Savings): Why Not Both?
Even though they serve different purposes, share draft (checking) and share (savings) accounts are both important for your financial wellness. And when used together, they make everyday life smoother and your financial goals more reachable.
Whether it’s for a long-term goal like buying a car or a short-term need like preparing your home to face a storm, it’s important to consider having both a share draft (checking) and share (savings) account while understanding the differences between the two.
Quick Snapshot: Share Draft (Checking) vs. Share (Savings)
Share Draft (Checking): Everyday money
- Where your paycheck lands and bills get paid
- Comes with a debit card for purchases and ATMs
- Designed for frequent transactions and daily spending
Share (Savings): Future money
- A safe place to set money aside and earn dividends
- Encourages less-frequent withdrawals so your balance can grow
- Ideal for goals: emergency fund, holidays, tuition, travel
Either way, your money is safe: Deposits at STTFCU are federally insured by the NCUA up to $250,000 per depositor, per institution.
Why Having Share Draft (Checking) and Share (Savings) Is Smart
- Control & clarity: Share draft (checking) handles the bills and the day-to-day spending, while share (savings) protects what you’re building. Having both accounts means better budgeting.
- Builds momentum: You can set up automatic fund transfers from share draft (checking) to share (savings). Turn good intentions into real financial progress!
- Protects your goals: Keeping goal money in share (savings) makes it less tempting to spend.
What to Know about Withdrawals
- Share Draft (Checking): Made for frequent use, like debit card purchases, ATM cash withdrawal, transfers, etc.
- Share (Savings): Best for parking funds and moving them occasionally when needed. Some transfer types or withdrawal frequencies may be limited by policy; we’ll help you choose the setup that fits how you bank.
For Families: Junior Share (Savings) Accounts
It’s never a bad time to teach children how to save early and grow steadily. A Junior Share (Savings) Account at St. Thomas FCU helps young members, ages 0-17, learn the habit of saving with a simple, parent/guardian-guided setup. Use it to set goals (school supplies, a new video game), celebrate deposits and track progress together online or in-app.
Dividends are paid on a monthly basis to accounts that have a minimum of $10. The dividend rate is determined by the credit union’s earnings and is not guaranteed.
Each Junior Share (Savings) Account is insured up to $250,000.00 by the National Credit Union Administration and backed by the full faith and credit of the United States Government.
A Simple Setup That Works
- Open a Share Draft (Checking) account for everyday spending and direct deposit.
- Open Share (Savings) for your goals–and Junior Share (Savings) if you’re a parent/guardian.
- Turn on eStatements & alerts so you always know what’s happening.
- Schedule an automatic transfer from Share Draft (Checking) to Share (Savings). Start small and let it grow.
Ready for a better way to manage your money?
Open your accounts with St. Thomas FCU in minutes. And if you have any questions, don’t hesitate to call us at (340) 774-1299 or email memberservices@sttfcu.net.
And stay tuned to this website for more helpful Money 101 articles that will help you achieve your financial goals.