Overdraft Advantage
Protection for those unexpected overdrafts on your consumer checking accounts
At Tech CU, we provide a wide range of products and services to help you better manage your finances, including overdraft protection for your consumer checking account.
An overdraft occurs when an item such as check is presented for payment, and there are insufficient funds in your checking account to cover the item - but we pay it anyway. Overdrafts can be paid in two different ways:
- We offer standard overdraft practices, called "Overdraft Advantage," that come automatically with your checking account.
- We offer overdraft plans, where you request that we transfer available funds for your savings account or advance funds from an available line of credit (credit approval required) to cover overdrafts.
Overdraft Advantage is a discretionary service under which Tech CU may, at our option, advance funds to pay an item presented against a checking account that does not have sufficient available funds or contractual overdraft protection to cover it. It is not a line of credit or a loan.
When Tech CU receives an item for payment and this amount causes your checking account balance to drop below zero (negative balance), we will, as a courtesy, pay the check or debit transaction up to your Overdraft Advantage limit. The amount by which the item exceeds your available balance in addition to $20 (our non-sufficient funds fee) will be deducted from your checking account.
If paying the item results in a negative balance in your account of less than $5.00, the overdraft fee of $20.00 will be waived only for Debit Card purchases. And, unless you opt-in to coverage of ATM cash withdrawals or everyday debit card purchases that cause an overdraft, these transactions will generally be declined and no overdraft fee will be assessed. If the transaction is a check or ACH Withdrawal, the $20.00 fee is not waived.
No, Overdraft Advantage is a discretionary service and an application is not required. Overdraft Advantage will generally be available as long as you do not opt-out and your account remains in good standing. However, you will need to opt-in to Overdraft Advantage for ATM and everyday debit card transactions.
- Your loan obligations are current, and you are not a bankruptcy debtor.
- You cure any negative balances within 30 days.
- You do not use the Overdraft Advantage service excessively.
No. While Tech CU will generally make the service available if your checking account is in good standing, the service is discretionary and we may decline to pay items presented against insufficient funds at any time for any reason. If we do not authorize to pay an overdraft, your transaction will be declined.
We may pay overdrafts on the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic Clearinghouse (ACH) payments
- Online bill payments
Payment of these items is standard with your checking account. We pay overdrafts at our discretion. We do not guarantee automatic authorization and payment of any type of transaction. You may, if you wish, opt-out of this service, in which case any of these transactions presented against insufficient funds will be declined or returned unpaid.
- Set up direct deposit to prevent any delays in processing/depositing checks.
- Receive continuous account updates through Tech CU's online banking, mobile banking, bill pay, eStatements, and Alerts.
- Link your checking account to your savings account and/or a line of credit so funds can be transferred or advanced to cover any inadvertent overdrafts. We will not pay items under Overdraft Advantage if you have funds or credit available from these sources to cover items that would otherwise cause a negative checking balance. (Please note: Overdraft transfers from savings are limited to six per month.)
Under our standard overdraft practice for checks, ACH and online bill payment:
- We will charge you $20 for each item paid, declined or returned.
If you do not opt-in to this service and you have insufficient funds to cover the transaction, your debit card or ATM transaction will be declined, and no fee will be charged.
- Please call us at (800) 553-0880
- Visit any of our branches
- Log into Online Banking and select Debit Card Overdraft Protection Opt In/Opt Out
If you change your mind, you can opt back out at any time.
Your Overdraft Advantage limit is the maximum negative balance we will permit on your checking account, and is based on your Relationship Rewards level.
| Relationship Reward Level | Overdraft Advantage Limit |
|---|---|
| Preferred | $500 |
| Preferred Plus, Premier, Private Banking | $1,000 |
Only one checking account is eligible for Overdraft Advantage. Overdrafts on other accounts will be handled as follows:
- If you have a Tech CU Personal Line of Credit or Home Equity Line of Credit, funds will be advanced from the line of credit to cover overdrafts according to the terms in the credit agreement. Any person authorized to write checks on your checking account (joint owner, holder of a Power of Attorney, etc.) can access your line of credit for overdraft protection, even if they are not a borrower on the line of credit.
- If you designate a Tech CU Savings account as an overdraft protection source, funds will be transferred from the account to cover overdrafts according to the terms of the account agreement. Any person authorized to write checks on your checking account can access your savings account for overdraft protection, even if they are not an owner of the account.
- If you have more than one overdraft protection source with available funds or credit, Tech CU can decide which sources to access to cover overdrafts.
- If you do not have a designated Tech CU line of credit or savings account as an overdraft protection source with available funds or credit, the credit union may at their discretion either pay or return any items (including checks, ACH transactions, online bill payments, etc.) that overdraft your checking account. The same fee will be charged whether Tech CU pays or returns the item. If Tech CU pays an overdraft item, they will notify you and you will agree that they can restore associated negative balances and fees from subsequent deposits, even if deposited funds are normally exempt from creditors' remedies (such as social security deposits).
Yes, you can opt out at any time. You can do this in the following ways:
- Call (800) 553-0880 and speak with a representative during normal business hours.
- Visit any of our branches
Tech CU does not encourage overdrawing your checking account. Overdraft Advantage is intended to cover occasional inadvertent overdrafts if you have not established or do not have available credit or funds in a Tech CU line of credit or share (savings) account to cover the overdraft. Overdraft Advantage is not a line of credit or a loan. We are never obligated to pay an item that would overdraw your account when you do not have available funds or credit to cover it. If we instead return the item unpaid for insufficient funds, a Returned NSF fee is assessed. As a courtesy, we may pay more than four overdrafts in a day, but will never charge you more than four per day. We may suspend your Overdraft Advantage limit without prior notice for any reason or no reason. We recommend you manage your finances responsibly and encourage you to set up a line of credit or savings account to cover most overdrafts. You may opt-out of Overdraft Advantage at any time, but you are responsible for all overdrawn balances and for keeping your checking account in good standing.
