Savings Accounts
Regular Share Accounts
Membership begins when you open a share account. The basic savings account is also the shares of ownership you have in the credit union. Open the account with a minimum of $25.00. A share account offers full membership privileges and qualifies you for all other credit union services. All regular share accounts receive very competitive monthly dividends. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends will begin to accrue on the business day you place cash/non-cash items (for example, checks) to your account.
The par value of a share is $5.00. This is not a transaction account, so Regulation D limits apply.
The Board of Directors set the rates!
Christmas Club Accounts
Join the Christmas Club program, which begins November 1 each year and earns an annual dividend. Deposits can be made by check, cash, or payroll deduction. You can add to the account any time during the year, but once withdrawal is taken, the account closes for that year.
Special Club Accounts
Special accounts are similar to a regular share but do not require a minimum to open. Dividends are paid monthly to this account. Please refer to the “Share Accounts” section for more information on this account.
Individual Retirement Accounts (IRAs)
A Traditional IRA is a special tax-deferred savings plan authorized by the Federal Government to encourage you to accumulate money for retirement. We offer Individual Retirement Accounts (IRAs) for your long-term, personal retirement savings, including Traditional, Roth, and Education IRAs. All types of IRA dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day and is paid quarterly to your retirement account. The dividend declaration date is the last day of the dividend period.
If you close your account before the dividend is paid, you will not receive your accrued dividends. IRAs are tax-deferred until withdrawn. You may withdraw funds from your IRA at any time; however, early withdrawal penalties may apply. A small annual maintenance fee is charged. All IRAs are federally insured up to $250,000 by NCUA, separate from your other share accounts.
Roth IRA Accounts
A Roth IRA is an Individual Retirement Account to which participants are able to make annual non-deductible contributions. Unlike a Traditional IRA in which your earnings are tax-deferred, Roth IRA earnings can be tax-free. You may convert your Traditional IRA to a Roth IRA.
The entire taxable amount of the conversion must be included as income for the year the conversion is made. Qualified distributions may be withdrawn tax and penalty-free. Non-qualified distributions may be taxable and subject to an IRA early distribution penalty. To receive more information on Roth IRAs, contact the credit union. All type IRA’s dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.
The Roth IRA dividends are paid quarterly on the last day of the quarter. Withdrawals made before quarter-end will not receive a dividend. All IRA accounts are charged a small maintenance annual fee.
Education IRA Accounts
Unlike Traditional and Roth IRAs, Education IRAs are not tools for retirement savings. They are designed solely to help pay higher education expenses. Because the purpose of an Education IRA is so different from Traditional and Roth IRAs, the advantages are also unique. Earnings on the funds in an Education IRA will be tax-free if they are used to pay for higher education expenses before the designated beneficiary reaches age 30.
An Education IRA encourages a regular savings program for a child’s education. Persons, such as grandparents, can fund this type of savings and in many instances, funds can be moved from one family member’s account to another’s. Contact the credit union for more information.
Again, Education IRA dividends are paid quarterly. Monies withdrawn before quarter-end do not receive a dividend on the withdrawn portion.
Share Certificates (CD's)
Share certificates are similar to banks’ Certificate of Deposit (CD). If you want a higher dividend rate and do not need immediate access to your funds, then share certificates are for you. Credit union share certificates are federally insured by NCUA up to $250,000. The minimum balance to open a certificate account is $1,000. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends will begin to accrue on the business day you place the funds in your account.
Certificates are offered for three different terms: 6-month, 1-year, or 2-year. Dividends are credited to your share account semi-annually. Early withdrawal penalties may be imposed.
Pee Wee Penguin
Have fun with your kids while teaching them to be smart with their money and introducing them to the value of credit union membership! Open a Pee Wee Penguin Account today!
Pee Wee Penguin Club Accounts are for children 0 to 12 years in age. When opening a savings account at NorthWestern Energy Employees Federal Credit Union, children will receive a welcome bag with a gift and their very own savings account card with their account number. They will receive a Pee Wee Penguin Club coin saver book to start saving their quarters! Kids also receive a birthday card from Pee-Wee himself on their special day! Start your little investors on the path to smart money today! Contact the credit union for information!