Overdraft Protection
Being prepared. Just in case.
What is an overdraft and how can I avoid it?
An overdraft occurs when you do not have enough money in your checking account to cover a transaction, but we pay it anyway.
We can cover your overdrafts in two different ways:
1. Linking your Primary Share Savings to your checking account. A fee is not associated with this type of overdraft.
2. Courtesy Pay: you must be eligible for this service and a $30 fee per overdraft transaction will apply.
What are my options?
You may avoid overdrafts on your account in these ways:
1. Keep track of your balance, deposits and payments, including those that are scheduled to occur automatically.
2. Balance your checking account with your monthly statement.
3. Sign up for direct deposit.
4. Keep a small cushion in your checking account.
5. Link your savings account to your checking account. We will transfer money from your savings to your checking for a small fee when you need it.
Does Premier Source offer overdraft protection plans?
Yes! See the chart below for our overdraft protection options
Overdraft Protection and Courtesy Pay Protection Plans Overdraft Line of Credit (ODLOC)
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Overdraft Protection Plan
Summary: Overdraft Protection can be set up to automatically transfer funds from your Savings Account to cover items presented for payment when your checking account has insufficient funds to cover the transaction.
Eligible Accounts: ALL Premier Source FCU Checking Accounts
Limits to Participation: None
Covered Items (automatically covered): ATM Transactions, Automatic Payments Deducted from Your Account (i.e. ACH or Bill Payments), Checks you write, Debit Card Transactions
Covered Items (Member MUST Opt-In to be covered): N/A
Account Requirements: N/A
Days to Correct Any Balance Deficiency (repayment of overdraft): Within 30 calendar days of the Overdraft, *after that time, normal collection process begins
Fee: See “General Fees-Share Transfer Fee (Overdraft Transfer Fee)” on current Fee Schedule
Courtesy Pay Protection Program
Summary: Courtesy Pay is an additional protection on your checking account (after 90 days of Membership) when there are not enough funds in your Overdraft Account to cover a transaction
Eligible Accounts: ALL Premier Source FCU Checking Accounts
Limits to Participation: One Account per Household
Covered Items (automatically covered):
- Checks and other debits cashed at a Financial Institution
- ACH Debits and Withdrawals (i.e. ACH or Bill Payments)
- Automatic Payments Deducted from Your Account (i.e. ACH or Bill Payments)
- Checks you write
- Recurring Debit Card purchases (i.e. Netflix, Apple or Mobile Phone)
- Pre-authorized Internal Debits
Covered Items (Member MUST Opt-In to be covered):
- ATM Transactions
- One Time Debit Card Transactions
- ATM Withdrawals and/or Point-of-Sale (POS) Transactions
Account Requirements:
- Account Holder is 18 years or older
- Account has been open for 90 days +
- Account is in good standing
- Courtesy Pay Protection Program Opt In/Opt Out ATM/Debit Form
Days to Correct Any Balance Deficiency (repayment of overdraft): Within 30 calendar days of the Overdraft, *after that time, normal collection process begins
Fee: See “General Fees-Share Transfer Fee (Overdraft Transfer Fee)” on current Fee Schedule
Overdraft Line of Credit (ODLOC)
Summary: Overdraft Line of Credit (ODLOC) is available to qualified Members that charges interest on all fund advances. This loan product will automatically transfer funds into your checking account to cover your overdrafts.
Eligible Accounts: ALL Premier Source FCU Checking Accounts
Limits to Participation: Based on Your Individual Credit Score
Covered Items (Member MUST Opt-In to be covered):
- ATM Transactions
- One Time Debit Card Transactions
- ATM Withdrawals and/or Point-of-Sale (POS) Transactions
Account Requirements:
- Account Holder is 18 years or older
- Account has been open for 90 days +
- Account is in good standing
- Courtesy Pay Protection Program Opt In/Opt Out ATM/Debit Form
Fee: Annual Fee: $25.00
Call us at 413.525.2002 and speak with a member service representative about the options that are right for you.
Some Important Things to Remember:
Try to avoid relying on any form of overdraft protection. Many people use these plans as short term loans; however they are meant for emergencies and are costly forms of credit.
Remember that any form of overdraft protection is optional.
If you overdraw your account, put money back into your account as soon as possible. Remember to put enough money back into your account to cover both the amount of your overdraft and any fees.
Protect your money with good account management practices!
*Courtesy Pay Program is a service offered to members on their personal share draft account but is not a line of credit. It allows you to overdraw your account up to $500.00 for a fee (see Fee Schedule and Membership Agreement) in order to pay the following types of transactions:
- Checks and other debits cashed at a teller window ACH debits and withdrawals
- ATM withdrawals and/or Point-of-Sale transactions
- Service or check charges
- Pre-authorized internal debits
- Checks issued to a third party
The Credit Union is under no obligation to pay every overdraft. Repayment – According to 701.21 (c)(3), a member has 30 calendar days from the day the advance was made, not to exceed 45 calendar days, to either deposit funds or obtain an approved loan from the Credit Union to cover each overdraft.
If a member does not qualify for a loan under the loan policies and guidelines, the member may sign a promissory note to repay the overdraft at an interest rate not to exceed 18%. It is Premier Source Credit Union’s policy to provide members with every opportunity for repayment.