Overdraft Protection Options Can Be Helpful Financial Tools
Have you ever miscalculated your checking account balance, forgotten to write down a transaction, or that a draft was scheduled to clear your account? Ever run close to payday and out of cash? We've all been there at least once, and experienced the embarrassment and panic that go along with these common situations.
Coosa Pines FCU offers members a choice in Overdraft Protection -- and the choice not to resort to high-interest payday lenders and cash advance loans. With Overdraft Protection from your credit union, you can avoid multiple fees for returned checks or drafts, collection fees that can range from $35 to $60 per item, or payday loans with interest rates that average 400%.1
1. Overdraft Protection from Savings
$ Should your checking account have insufficient funds to clear an item, the funds will be automatically transferred from your available funds in the Share savings account in $25 increments for a $3 transfer fee. Thus, $28 must be available for transfer above the $5 Share balance.2
2. Overdraft Transfers (Cross-Account Transfers)
$ As an additional protective measure, you may contact us to have any account on which you are either the primary or a joint owner set up for Cross Account Transfers. This is especially beneficial on separate accounts owned by spouses, or for transfers between parent and child accounts.
$ This allows automatic Overdraft Protection transfers from multiple alternate Share savings or Share Draft checking accounts, in addition to the Overdraft Protection from Savings.
$ Should the checking account have insufficient funds to clear an item, the funds will be automatically transferred from available funds in the alternate account in $25.00 increments for a $3.00 transfer fee. Thus, $28 must be available for transfer.2
3. Overdraft Privilege (Courtesy Pay)
$ Overdraft Privilege (or Courtesy Pay) is a service available to most members with personal checking accounts that have been established at least 30 days and are in good standing.
$ Eligible members will be given a $300
Courtesy Pay limit (
including any overdraft fees) and receive a letter in the mail explaining the details of the program.
$ Overdraft Privilege is
not a line of credit, but will allow eligible members to overdraw the
Share Draft checking account up to $300 (
including fees) through the normal clearing process for checks and other transactions made using a checking account number, or automatic bill payments.
$ Members with
Overdraft Privilege may also access funds available at the teller line or the ATM.* The
fee charged for paying the items through
Overdraft Privilege is the same as the fee for items returned unpaid.
NOTE: Members do not have to sign up for Overdraft Privilege, but must authorize the credit union to pay overdrafts on ATM and everyday debit transactions, or contact the credit union to opt out of the service. The credit union is not obligated to grant Overdraft Privilege on any checking account.
4. Overdraft Protection Line of Credit
Another great option offered by Coosa Pines FCU is the
Overdraft Protection Line of Credit. This loan is available for qualifying members who have personal
Share Draft checking accounts. The
Overdraft Protection Line of Credit affords members peace of mind in knowing that they are covered in case of accidental overdraft, or an emergency between paydays.
$ This loan is a credit line of $500 linked to the checking account.
$ It can be used simply as protection from overdrawing the checking, or as an emergency fund accessible any time it is needed.
$ The line of credit is a smart and affordable alternative to high-interest payday or cash-advance loans.
$ Advances are transferred automatically, as needed, in increments of $100.
$ There are no “per item” insufficient funds fees.
$ Members pay a low 14.95% APR3 on the outstanding balance.
$ Minimum payments are just $25 per month, but the loan may be paid in full at any time with no pre-payment penalties.
$ The application process is fast and easy!
Contact your favorite branch for more information or to discuss your options.
We're here to serve you, and would be happy to help!
2Federal Regulation D restricts the number of electronic transactions on a share savings account to six (6) per month.
3APR=Annual Percentage Rate. Certain restrictions apply. Contact a Loan Officer for complete details.
