Overdraft Coverage Options
OVERDRAFT COVERAGE OPTIONS: OVERDRAFT PRIVILEGE AND OVERDRAFT PROTECTION
Life happens! Interstate Unlimited Federal Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
|Overdraft Protection Link to Another Deposit Account you have at Interstate Unlimited Federal Credit Union1||Free|
|Overdraft Protection Line of Credit1, 2||Subject to interest|
|Overdraft Privilege||$30.00 per item|
1 Call us at (800) 822-1124, email us at email@example.com, or come by a branch to sign up or apply for these services;
2 Subject to credit approval.
Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account at no charge, or line of credit you may have at Interstate Unlimited Federal Credit Union for a finance charge. Please note that overdraft lines of credit are subject to credit approval.
Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction.
Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
|Transactions Covered with Overdraft Privilege||Standard Coverage
(No action required)
|Extended Coverage(Your consent required)*||If you would like to select Extended Coverage for future transactions:
|ACH – Automatic Debits||X||X|
|Recurring Debit Card Payments||X||X|
|Online Bill Pay Items||X||X|
|Internet Banking Transfers||X||X|
|Teller Window Transactions||X||X|
|Everyday Debit Card Transactions||X*|
* If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
You can discontinue the Overdraft Privilege in its entirety by contacting us at (800) 822-1124 or sending us an e-mail at firstname.lastname@example.org.
What Else You Should Know
- A link to another account or a line of credit is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance.
- The $30.00 Overdraft Fee is the same fee that would be charged if a check was returned as unpaid. If multiple items would overdraw your account on the same day, each item would be assessed an appropriate fee of $30.00 or a Return Fee of $30.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
- We generally post items in the following order: 1) credits, 2) ATM and debit card transactions (in the order received), 3) ACH debits (low to high by dollar amount, 4) checks (check number order); however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of fees assessed.
- Although under payment system rules, Interstate Unlimited Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Interstate Unlimited Federal Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
- Giving us your consent to pay every day debit card and ATM overdrafts may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
- Interstate Unlimited Federal Credit Union authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Interstate Unlimited Federal Credit Union may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.
- Interstate Unlimited Federal Credit Union will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
- Except as described in this letter, Interstate Unlimited Federal Credit Union will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
- We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit.
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Overdraft Privilege limits of up to $300-500 are available for eligible Personal and Business Checking accounts opened at least 30 days in good standing.
- Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-two (32) days for a minimum of one business day.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (800) 822-1124 or visit a branch.
Money Management Tools
The first objective of Interstate Credit Union is for the individuals and families we serve to be financially healthy. One indicator of good financial health is a well-managed checking account.
We have partnered with BALANCE, a financial education and counseling service to provide members with the resources to be financially successful. As a benefit of your membership with us you have access to free financial guidance through BALANCE. If your Overdraft usage is the result of financial stress, you can work with a BALANCE counselor to eliminate that stress through the creation of your own customized budget and action plan.
Call 888.456.2227 or log on to https://www.balancepro.net/partners/interstatecu/ for access to this free, confidential service. BALANCE counselors are available Monday through Thursday 8 am- 11 pm, Friday 8 am- 8 pm, and Saturday 9 am- 6pm (EST).