Banks and Credit Union Deposit Accounts - Financial Regulation

Last reviewed/updated: August 6, 2024

Banks and credit unions are financial depository institutions permitted by state and federal laws and regulations to hold money for individuals or businesses in deposit accounts. Banks and credit unions also offer financial products like credit cards and loans, and some provide financial education and budgeting resources for individuals or small businesses.

The primary difference between a bank and a credit union is that while banks may accept deposits from anyone, credit unions only accept deposits from their members. Credit union membership is based on a common bond. You may qualify for membership in a credit union based on where you live or work, through association with an organization like a school or place of worship, or through immediate family that meets the membership criteria.

What is a deposit account?

A deposit account is a type of account that accepts and holds sums of money (called “deposits”) for an individual or business. A deposit account at a bank or credit union is a place to safely keep your money. Types of deposit accounts include checking, savings, certificates of deposit (CDs), and money market accounts, among others. You can use the money in your deposit account to make purchases, pay bills, send or receive funds electronically, and depending on the type of account, withdraw cash and write checks. Maryland law requires all banks and credit unions to have deposit insurance.

Who has access to the money in my deposit account?

The names on your deposit account documents determine who has access to your account. When you open a deposit account at a bank or credit union, you will sign a signature card and account agreement.

• In general, Maryland law provides that any person identified on the signature card as an owner or a joint owner of the account will have full access to the account and may act alone to make withdrawals, deposits, and/or changes to the account. If you have a joint owner named on your account, that person will, for many purposes, be treated as having the same rights to the account funds as you.
• Your account agreement includes terms about who has access to your funds while you are living and to whom the funds belong when you die. Read the account agreement carefully because it determines many other rights and responsibilities concerning your deposit account. Learn more about account ownership and survivorship.

What are the types of deposit account fees?

Types of deposit account fees include, but are not limited to, a service or maintenance fee, an overdraft fee, and a non-sufficient funds fee. When you open a deposit account, the bank or credit union must disclose the frequency and dollar amount of the fees it charges. Many banks and credit unions also post their fee schedules on their website.

• A service or maintenance fee may be charged monthly. Sometimes this fee will be waived by your bank or credit union if your account balance stays above a certain dollar amount, you conduct a minimum number of transactions, and/or you use “direct deposit” for your paychecks or other income.
• An overdraft fee is charged when funds are withdrawn from your account (such as when making a payment), but there is not enough money available in your account, so the bank or credit union pays the difference so that your transaction is successfully completed. You may be charged an overdraft fee each time you make a payment that is greater than the amount of money available in your account and your bank or credit union pays the difference. You may have the choice of “opting in” or “opting out” of overdraft protection. If you opted out, the transaction is declined instead of causing your account to be overdrawn. Opting in means your bank or credit pays the difference and you will be charged an overdraft fee in addition to the extra amount paid by your bank or credit union.
• A non-sufficient funds (NSF) fee is charged when you have a negative account balance, or your balance drops below a certain amount as designated by your bank or credit union. NSF fees may be charged daily until you deposit enough money to bring your account balance above the minimum amount required by your bank or credit union.

To avoid excessive deposit account fees and charges, read all the documents that are provided to you when you open the account and ask questions during the account opening process to make sure that you understand all your rights and responsibilities. Once your account is open, check the account balance frequently.

Where can I learn more?

• HelpWithMyBank.gov – U.S. Office of the Comptroller of the Currency
• Consumer Resource Center – Federal Deposit Insurance Corporation
• MyCreditUnion.gov – National Credit Union Administration
• Bank Accounts and Services – U.S. Consumer Financial Protection Bureau

To learn about deposit insurance for Maryland banks and credit unions, see Understanding Deposit Insurance.

To learn about how depository institutions operating in Maryland are regulated, see Regulation of Banks and Credit Unions in Maryland.

Download Bank and Credit Union Accounts: Frequent Asked Questions (PDF).

Download What Account is Right for You? Account Ownership and Survivorship (PDF).

To submit a complaint to our Office about a Maryland state-chartered bank or credit union, go to Consumer Complaints and Inquiries. Call us at 410-230-6077 or email CSU.Complaints@maryland.gov for assistance.