An overdraft occurs when you do not have enough money in your account to cover a transaction. It’s a good habit to keep an eye on your finances and make sure you have enough funds in your accounts to cover your day-to-day expenses. Here at CCU, we understand that sometimes overdrafts still happen. Luckily, we have several different ways you can protect yourself against overdrafts. Learn more about each option below.
Overdraft Transfer Service
Your first line of defense against an overdraft should come from money you already have available in another account. This type of overdraft protection is called an overdraft transfer, and the account you select to transfer funds to cover overdrafts is called a draw source. This is one of the easiest and least expensive ways to keep yourself protected from overdrafts. If you make a transaction that brings your account to a negative balance, your draw source may automatically transfer any available funds to cover that transaction. Overdraft transfers are subject to fees.
Your deposit accounts have two kinds of balances: the actual balance and the available balance. We use your available balance to determine whether there are sufficient funds in your account to pay items. Your available balance may be less than your actual balance if there are check holds or other holds on your account, if previous deposits are returned, or if fees have been charged. You can learn more about the difference between these kinds of balances by referring to your Membership and Account Agreement.
- Linked deposit account
- You can set up overdraft transfers to come from another deposit account of which you are the primary owner, such as a savings account, a money market account, or even another checking account.
- Transfers from savings accounts and money market accounts are subject to Federal Regulation D transaction limitations of six (6) total per month. Additional withdrawals are subject to a fee, as outlined in our current Fee Schedule.
- Overdraft transfers from a linked deposit account are subject to fees, as outlined in our current Fee Schedule.
- Linked VISA credit card
- You may be eligible to use your CCU Visa credit card as a draw source.
- An overdraft transfer from a credit card is a type of cash advance; fees apply according to your VISA Credit Card Agreement, and Account Opening Disclosure.
- Linked Home Equity Line of Credit (HELOC)
- You may also be eligible to utilize your HELOC as an overdraft draw source.
Fees, terms, and conditions apply according to your loan contract.
You may also be eligible for other overdraft programs, such as Courtesy Pay. Courtesy Pay is a discretionary service that CCU provides to cover certain transactions on eligible accounts. It is intended to be used as a last resort to help cover the unexpected. We will first look to see if you have set up any draw sources before applying this discretionary service to cover overdrafts. Transactions covered by the Courtesy Pay Service are subject to fees. Please refer to your Membership and Account Agreement, and the Fee Schedule for program details.
Overdraft Protection Comparison
|Fees||Restrictions||How To Set Up|
|Linked Deposit Account||Refer to Fee Schedule||Funds are accessible up to the available balance in the draw source account. Savings and money market accounts are subject to Regulation D transaction limitations; fees apply after six transfer per month||Call or visit service center|
|Linked Credit Card||Transfers are processed as a cash advance; refer to VISA Credit Card Agreement, and Account Opening Disclosure||Accessible up to available credit on card||Call or visit service center|
|Linked HELOC||No fees apply||HELOCs are available to use only during their draw period; accessible up to available credit limit||Call or visit service center|
|Courtesy Pay||Refer to Fee Schedule||Discretionary service; refer to Membership and Account Agreement, and Courtesy Pay Terms and Conditions||Courtesy Pay is automatically applied to eligible accounts. Members have the option to opt in to include coverage for ATM and certain debit card transactions, or to opt out of Courtesy Pay altogether.|