Overdraft Coverage Options
Life happens! We understand that unexpected overdrafts occur from time to time - Overdraft Coverage can help.
Overdraft Coverage Options
|Overdraft Protection (links to another NWCU deposit account)
||$3 per transfer|
|Overdraft Protection (line of credit)||Subject to fees + interest|
|Overdraft Advantage||$28 Overdraft Advantage or Insufficient (NSF) Fee per item|
Your VISA credit card will no longer automatically cover Overdrafts as of April 5, 2022.
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Northwest Community Credit Union for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
Overdraft Advantage allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have overdraft protection, Overdraft Advantage is still available as secondary coverage if the other protection source is exhausted. Please review the "What Else You Should Know" section at the bottom of this page for other important information.
|Transactions Covered with Overdraft Advantage||Standard Coverage (no action required)||Extended Coverage (your consent required on consumer accounts)*|
|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||
*If you choose Extended Coverage on your account, everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Advantage Extended coverage, it is not necessary to request it again.
You can discontinue the Overdraft Advantage in its entirety by contacting us at (800) 452-9515 or sending us a message through Online Banking.
Extended Coverage Consent Form
What Else You Should Know
- A link to another account or a line of credit may be 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, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $28.00 Overdraft Advantage Fee or Insufficient Funds (NSF) Fee that is charged if you overdraw your account is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Advantage Fee or an Insufficient Funds (NSF) Fee of $28.00. All fees and charges will be included as part of the Overdraft Advantage limit amount. Your account may become overdrawn more than the Overdraft Advantage limit amount because of a fee.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and Insufficient Funds Paid Fee from funds that you deposit or that are deposited into your account may call us at (800) 452-9515 to discontinue Overdraft Advantage.
- If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Northwest Community Credit Union will charge an Overdraft Advantage Fee or Insufficient Funds (NSF) Fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Northwest Community Credit Union may pay the item, and, if payment causes an overdraft, charge an Overdraft Advantage Fee or Insufficient Funds (NSF) Fee.
- There is a limit of $140.00 in Overdraft Advantage Fees and Insufficient Funds (NSF) Fee per day we will charge. We will not charge an Overdraft Advantage Fee or Insufficient Funds (NSF) Fee if the amount of the item is $5 or less.
- Our general policy is to post items throughout the day and to post credits before debits. We process checks and items as follows: (i) checks are paid with the least items paid first, (ii) for ACH items, credits are processed first and ACH debits processed second with the least items paid first, and (iii) debit card transactions are paid in the chronological order they are received; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Advantage Fees or Insufficient Funds (NSF) Fees assessed.
- Overdraft Advantage is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Depositor and each Authorized Signatory will continue to be liable, jointly, and severally, for all overdraft and fee amounts, as described in the Membership and Account Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
- Northwest Community Credit Union may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card transactions on your consumer account (Extended Coverage) may result in you incurring Overdraft Advantage Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Advantage Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Advantage limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Understanding Your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.
- We authorize and pay transactions using the Available Balance.
- Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
- Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
- The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Advantage limit and any available Overdraft Protection.
- The balance used for authorizing everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Advantage limit.
- The balance used for authorizing everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Advantage limit.
- Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your Available Balance.
- Please be aware that the Overdraft Advantage amount is not included in your Available Balance provided through online banking, mobile banking or Northwest Community Credit Union’s ATMs.
- We 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 Advantage Fee may be assessed.
- Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Advantage limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding Overdraft Advantage Limits
- New consumer checking accounts may receive a $100 Introductory Overdraft Advantage limit at account opening that may be increased to $500 when opened after 30 days in good standing.
- New business checking accounts may receive a $100 Introductory Overdraft Advantage limit at account opening that maybe be increased to $750 or up to $1,500 depending on the account type opened after 60 days in good standing.
- Overdraft Advantage may be reduced 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 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Advantage limit reinstated.
If you have any questions about Overdraft Protection or Overdraft Advantage, please call us at (800) 452-9515 or visit a Northwest Community Credit Union branch.