HELP WITH LIFE'S UNEXPECTED MOMENTS
We understand that even the best laid plans can be turned upside down when life unexpectedly happens. Hopefully, you don't have to worry about your checking account having a negative balance, but when an emergency arises, you don't want to worry about being declined.
An overdraft occurs when the available balance (account balance less any pending transactions or holds) in your account is not sufficient to cover a transaction, but we pay it anyway.
To learn more about overdraft privilege, click here for an informative brochure.
Use our online overdraft request form to make your selection.
What It Is
Overdraft Protection is a valuable addition to any checking account. Setting up a draw account links your checking account to one of your other accounts (savings or line of credit, for example). Draw accounts protect you from declined transactions and from a negative balance by pulling needed funds from your other account. Plus, linking accounts is a less expensive option than an overdraft.
Overdraft Privilege is an automatic protection on checks or ACH transactions, but you need to ask us to opt you in to this protection on debit or ATM card use. If you do not choose to opt in, and don't have any draw accounts set up to cover the charge, the card transaction will be declined. To learn more about using Overdraft Privilege to cover debit and ATM transactions, watch our tutorial video about Federal Regulation E.
Pick the protection set-up that works best for you and your accounts:
|Overdraft Protection||What It Costs|
|Ready Money or HELOC||Subject to interest|
|Another deposit account||$5 per transfer*|
|Overdraft Privilege||What It Costs|
|ATM/debit card||$28 per item*|
|Check/ACH||$28 per item*|
Managing your overdraft protection is simple:
- Opt in or opt out of Extended Coverage on ATM/debit card transactions. It's easy!
- Request in Digital Banking
- Call (800) 444-4589
- Visit any of our branches
- Set up your draw accounts by emailing [email protected]
Hopefully, you will never need to use your overdraft protection and it will just be a safety net for you. Here are some tips to help you avoid needing to use it:
- Track balances and transactions through Digital Banking or using phone or text banking.
- Set up automatic email alerts so you can be emailed when your balance goes below a certain amount or receive the balance amount each day.
- Keep a transaction register and review your monthly statement.
- Go mobile by using our app, mobile website or text banking.
What Else You Should Know
- We post items in the following order: 1) ACH credits, 2) internal transfers and loan payments, 3) checks (in the order received), 4) ACH debits (in the order received), 5) ATM and debit card transactions (in the order received, may post throughout the day). However, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of overdraft or return fees assessed.
- Verity authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Verity may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction. Verity Credit Union 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 transaction amount. 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 Fee may be assessed. Please call us at (800) 444-4589 if you have any questions.
- A link to a savings account or a line of credit is 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 Digital Banking or Telephone Teller to keep track of your balance.
- The $28 fee is the same fee that would be charged if a check was returned as unpaid. If multiple items would overdraw your account on the same day, each item would be assessed an appropriate Overdraft Fee or a Return Fee of $28. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
- Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
- Although under payment system rules, Verity Credit Union may be obligated to pay some unauthorized debit card transactions, Verity Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card and ATM overdrafts may result in you incurring overdraft fees for transactions that we would otherwise be required to pay without assessing an overdraft fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
- Except as described in this letter, Verity Credit Union will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
- We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege.
- Overdraft Privilege limits of up to $800 are available for eligible Personal Checking accounts opened at least 30 days in good standing.
- Overdraft Privilege limits of up to $1,000 are available for eligible Business Checking accounts opened at least 60 days in good standing
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Overdraft Privilege may be discontinued 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 thirty (30) days for a minimum period of 24 hours.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
*For the transfer fee and the per item fee listings, please view the current rate and fees schedule.
Accounts will be charged the standard Overdraft fee of $28.00 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal or other electronic item that is paid and $28.00 for items returned. An overdrawn balance must be repaid within 30 days. We may not pay items under your Overdraft Privilege if you do not maintain your account in good standing by bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours, if you default on any loan or other obligation to Verity Credit Union or if your account is subject to any legal or administrative order or levy.