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Account Ownership

Account options to meet your needs

At Educational Systems Federal Credit Union, we offer different account ownerships to meet your needs.  To open an account, you'll need to be eligible for membership and provide a photo identification and verification of address.  For complete details on our account ownerships, view our Membership and Account Agreement.

Individual Accounts

An individual account is an account owned by one (1) member (individual, trust or other organization) qualified for credit union membership. If the account owner dies, the interest passes, subject to applicable law, to the account owner’s estate or Payable on Death (POD) beneficiary/payee or trust beneficiary.

Joint Accounts

A joint account established under the Maryland Multiple Party Accounts Law includes joint accounts, Payable on Death accounts and trust accounts. A joint account is an account owned by two (2) or more people.  The following applies to joint accounts:  
  • Rights of survivorship: Unless otherwise stated on the account, a joint account includes rights of survivorship. This means that when one (1) party dies, all sums in the account will pass to the surviving party(ies). For an account without rights of survivorship, the deceased party’s interest passes to his or her estate.
  • Control of accounts: Any party may withdraw or transfer funds, pledge to us all or any part of the shares (except the membership share), or stop payment on items without the consent of the other party(ies). We are not required to notify any party(ies) about any transaction.  
  • Liability of parties on an account:  If an item deposited in a joint account is returned unpaid, a joint account is overdrawn, or if we do not receive final payment on a transaction, the parties, jointly and severally, are liable to us for the amount of the returned item, overdraft, or unpaid amount and any charges, regardless of who initiated or benefited from the transaction.

Payable on Death/Trust Account Designations

A Payable on Death (POD) account or trust account designation is an estate planning tool used to ensure your assets are distributed the way you intended after you're gone.  Even if you have a will, the transfer of your assets could be delayed and subject to costly probate fees before they are given to your beneficiaries.  Any Credit Union account can be held in a trust except Individual Retirement Accounts (IRAs). Your attorney should prepare the necessary documentation to establish a Trust.  The Credit Union offers the following Trust options:
  • Revocable Living Trust: The Trustor may change or revoke the Trust, in whole or in part at any time.
  • Irrevocable Trust: The Trustor relinquishes ownership of the Trust to the Trustee(s). 

Accounts for Minors

This is a joint account where the minor is the primary account holder.  To open the account, the following must be provided: a legible signature of the minor, proof of parenthood or guardianship such as a birth certificate or court order and the minor's Social Security Number.  

Uniform Transfers to Minors Account (UTMA)

A Uniform Transfers to Minors Account (UTMA) is an individual account created by a custodian who deposits funds as an irrevocable gift to a minor (under the age of 18). Photo identification must be provided for the custodian in addition to proof of parenthood or guardianship such as a birth certificate or court order. Please note, UTMAs are only for savings accounts.

Student Accounts

We believe in helping students understand the importance of responsible money management.  A student may open their own savings account at the age of 13 and their own checking account at the age of 16.  A school ID or photo identification must be presented plus proof of address using a report card or a statement from another financial institution.  Listen to our "Teens and Money" podcast.

Association Accounts

Association Accounts are available for school based associations with written approval from the school principal.  The Membership Application must be completed and signed by all officials on the Association Account, and the official’s title must also be included on the application.  A copy of an official ID (i.e. Driver’s License) is required for all signors.

Accounts not available

The Credit Union does not provide the following types of accounts:
  • Business Accounts
  • Custodial Accounts for Adults
  • Estate Accounts
  • Representative Payee Accounts