Overdraft Protection Services
We understand you’ve got a busy life. It’s hard to keep track of all your finances when things are hectic. So what happens if you:
- Run short on cash between paydays?
- Have unplanned expenses?
- Make an honest mistake in your checkbook?
At FICU, we are here to help you manage your checking account by offering the following overdraft options:
Automatic Savings Transfer
When your checking account doesn’t have sufficient funds, an automatic transfer from your share savings (or any other selected savings account) will take place to cover any items clearing your account. You are limited to six transfers per month per savings accounts.
Overdraft privilege is an overdraft service we offer to pay items presented against your checking account when your account balance is not sufficient to do so. Instead of returning the transaction to the merchant for non-sufficient funds (NSF), we pay it and overdraw your account.
Overdraft privilege covers life’s unexpected emergencies and saves you from merchant NSF fees, interruption of services and the embarrassment and inconvenience associated with returned or declined items.
Regulations require members to opt-in to receive ODP services on ATM and everyday debit card transactions. ODP for other transations including check, Bill Pay and other transactions using yoru checking account number will not be affected.
There is no cost for Overdraft Privilege unless you use it. There is a per item fee each time an item is paid through Overdraft Privilege. See our fee schedule.
Overdraft Protection Transfer and Overdraft Privilege are two completely separate overdraft services offered by FICU.
Overdraft Protection Transfer allows funds to be transferred from a previously linked FICU sub-account, such as savings, money market or a line-of-credit, to pay an item. Overdraft Protection Transfer will NOT allow the account to overdraw (go into a negative balance) to pay an item. Overdraft Protection Transfers are subject to Federal Regulation D, meaning you can only have 6 electronic transfers from a savings or money market account per month for protection. Notify us which account(s) you wish to designate for Overdraft Protection Transfer.
Overdraft Privilege is a service which pays items which would otherwise be returned as NSF if the funds are not available in your account or overdraft protection transfer can no longer protect you. If you have established an Overdraft Protection Transfer source, we will attempt to pay an overdraft using this method before paying your overdraft utilizing Overdraft Privilege.
Overdraft Privilege is automatically activated 60 days after your checking account (Regular & Loyalty) is opened for the following types of transactions:
• Checks and other transactions made using your checking account number
• Automatic bill payments
We do not authorize and pay overdrafts utilizing Overdraft Privilege for the following types of transactions unless you opt-in for this service:
• ATM transactions
• Everyday debit card transactions
There are many reason why you might want to opt-in to ODP for ATM and everyday debit card transactions, including:
- In difficult times, your transactions may be approved when you need money to pay for unexpected expenses.
- Your purchase is approved when you have insufficient funds in your checking account, rather than denied.
- Eliminates embarrassment. Avoid the awkwardness of a merchant declind your transaction.
- Nothing to lose. There is no fee to opt-in and no fee if you never use the service, however, all the protection remains.
Complete and submit the ATM and Debit Card Overdraft Privilege Opt-In Form. Email the completed form to email@example.com or drop it off with one our friendly representatives at one of our branches.
After your account is open for 60 days, we will review your account to determine if you are eligible for Overdraft Privilege. If you are, your limit may be $300 on Regular Checking accounts and $500 on Loyalty Checking accounts (with direct deposit). This limit may be adjusted depending credit review and/or account history with FICU.
We recommend that you still opt-in to ODP for ATM and everyday debit card transactions because you never know when an emergency will occur. ODP acts as a last line of defense, only after overdraft protection transfer sources have been exhausted. ODP offers you peace of mind and it does not cost you anything unless you use it.
We pay overdrafts at our discretion. This means we do not guarantee we will always authorize and pay any type of transaction when there is not enough money available in your checking or designated overdraft protection accounts to cover the item.
We understand you may need to make a transaction that exceeds your balance in your checking account due to unforeseen circumstances or an unexpected emergency. While some financial institutions have decided to not allow anyone to opt-in to Overdraft Privilege for ATM and everyday debit card transactions, First Imperial CU firmly believes in giving our members a choice.