What is an Overdraft?
The basic definition of an overdraft is the spending of more money than is available in your account.
In the event you overdraft your account, and all forms of overdraft protection that you have set up, an overdraft fee may be charged to your account by the Credit Union to cover the transaction(s), at our discretion, for each item overdrawing your account.
If you overdraft your account and the Credit Union returns the item unpaid, an overdraft return fee may be charged to your account by the Credit Union.
See our fee schedule for applicable fees.
Tips to help avoid overdrafts
Keep track of all deposits and withdrawals from your account as they are made or be sure you do not spend more than your *available balance each day, and then record your transactions at the end of the day (in your check register). Be careful not to forget any transactions, as this can lead to overdrafts on your account.
Checks and ACH transactions clear your account from the lowest dollar amount to the highest dollar amount daily. ATM/Debit card transactions, may clear immediately or it may take up to three days to clear your account. If you use your card with your PIN, the transaction will clear immediately. If you use your debit card as a credit, the transaction may take up to three days to clear your account.
Use PCU (online banking) on a regular basis to keep track of your account. It is free!
Use our free E-services to receive e-mail notifications for the following:
- when your account balance falls below an amount that you choose
- when a specific check number clears, or a range of check numbers
- when an amount specified by your is withdrawn from your account
Try to keep a cushion, or extra money, in your account in case you forget a transaction or make an addition or subtraction error.
Talk to a Member Service Representative about overdraft protection options and choose the best ones for you.
* Available balance - your available balance is the most current record the Credit Union has about the funds in your account available for withdrawal. When you make a purchase with your debit card, a hold is placed on your account for the amount of the transaction until the item is cleared from your account. Although the funds have not actually been withdrawn from your account, the hold reduces your account the hold reduces your available balance. Be careful, outstanding checks that have not cleared your account or items that you have set up in online BillPay, are not deducted from your available balance.
Overdraft Protection Options
Transfer from Share Savings Accounts
Unlike many financial institutions, at the Credit Union it is free to have available funds transferred from your share savings account to cover overdrafts in your checking account. Simply ask a Member Service Representative to set up this free service for you. The transfer can be set up from a regular share savings account or money market share account. Christmas club accounts and IRAs cannot be used for overdraft protection.
Tip: Federal Regulation D limits certain types of withdrawal and transfer transactions you are allowed to make from your savings account to a maximum of six per month. Withdrawals in person or at the ATM do not count toward your limit of six transactions.
Overdraft Line of Credit
An overdraft line of credit is basically a loan that you are pre-qualified for to help protect against overdrawing your account. You may apply through our online application or in person at any Siouxland Federal Credit Union location. Line of credit approval is subject to underwriting, and typically you will be notified within 24 hours whether your application is approved or denied. There is no fee charged to obtain an overdraft line of credit, however, interest will be charged on the outstanding line of credit balance. You may pay off your credit line anytime you wish or you can make monthly payments to it.