Credit Union Checking Accounts

The cost of opening a checking account at a credit union varies depending on the specific institution. Generally, credit unions require a minimum deposit to open an account. This initial deposit remains yours and becomes part of your account balance. At California Credit Union, the initial deposit to open a checking account is $25. 

While there may not be a direct cost to open a checking account, the minimum deposit requirement is an initial investment. It’s important to note that this money isn’t a fee – it’s still your funds, just placed into the new account. Some credit unions may have additional requirements or fees, but many offer members low-cost or free checking accounts.

Yes, a minimum balance is typically required to open a credit union checking account. The exact amount varies by institution. At California Credit Union, you need an opening deposit of $25 to start your personal checking account. However, there are various types of checking account structures, such as those designed for students or Bank On accounts. At California Credit Union, eligible students need an initial deposit of $0.01, while a Bank On checking account requires a minimum opening balance of $1.00. 

While this is the minimum to open the account, there may be different balance requirements to maintain the account without fees or to qualify for certain benefits. For example, some checking accounts might require a higher balance to waive monthly maintenance fees or to earn dividends.

Account holders can earn dividends at credit unions, similar to interest earned in savings accounts at banks. The specific terms and rates for earning dividends on checking accounts can vary between credit unions.

At California Credit Union, you’ll need a minimum balance of $10,000 to earn dividends on your checking account. This feature can help your money grow over time, even in your everyday spending account.

While checking account dividend rates are generally lower than savings or money market accounts, personal checking accounts offer the advantage of earning returns on funds used for everyday expenses.

When considering a dividend-earning checking account, it is crucial to weigh the potential earnings against any fees or requirements. For some members, the convenience of having all funds in one account that earns dividends is valuable. For others, it might make more sense to keep a lower balance in checking and move excess funds to a higher-yield savings account or money market account.