Overdraft Protection

Transfer from Savings

What is it?

Transfer funds in $25 increments from your savings account to protect against overdraws on your checking account.

How does it work?

1. Your checking balance is $100 and you write a check for $160.
2. If funds are available, your savings account will automatically transfer increments of $25 into your checking account, and you avoid an insufficient funds fee (NSF).

Advantages

• There is no charge for this coverage option.
• Simple option with no application or opt-in necessary.

Line of Credit

What is it?

Cover checking overdrafts automatically with a line of credit that transfers just the amount needed to balance your account.

How does it work?

1. Your checking balance is $100 and you write a check for $150. You have insufficient funds in your savings account(s) to automatically transfer to checking.
2. The Line of Credit advances $50 to your checking account.
3. You will pay back the advanced amount, plus finance charges. The amount due will appear on your statement when the payment is due.

Advantages

• No cost unless you use the line of credit.
• Costs just pennies per day if you do use it, which is much less than overdraft charges.

See our Consolidated Agreement (375 KB PDF) for additional information.

Courtesy Pay

What is it?

Courtesy Pay is a service that adds a measure of protection to your checking account. Courtesy Pay may cover checks, BillPayer items, electronic transaction and ACH items that would overdraw your account, up to your approved limit, for one fee per covered overdraft transaction. That means instead of returning a check because of insufficient funds, the credit union may pay your check.

How does it work?

1. Your checking balance is $100 and you write a check for $150. You have insufficient funds in your savings account to automatically transfer to checking.
2. Courtesy Pay covers the expense.
3. You pay a Courtesy Pay fee, determined according to your account, and avoid additional returned check fees.
4. Overdrafts are determined using the available balance, explained on Page 6 in the Consolidated Agreement and Disclosures.

Advantages

• Can be used with an overdraft line of credit or transfer from savings.
• Partial coverage available in conjunction with another method of overdraft protection.
• Select which account to transfer from first: overdraft line of credit or savings.

Why opt in?

• Extra protection, especially if you use your debit card often.
• It's $30 or less for each overdraft.
• Only pay a fee if you overdraft.

How do I opt in?

• Opt in by logging into SCU Online Banking, selecting the Additional Services tab, then clicking on the "Reg E Opt In Form". Once you complete the form, select Opt In, then click the Submit button.
• Opt out any time by following the same instructions above, then click on "Opt Out" and the Submit button.

Need additional information?

For more information regarding overdrafts and fees, view our policy. Or call us at 800-868-8740. We're happy to assist you!