Overdraft Protection
Even if you think you'll never overdraw your checking account, automatic Overdraft Protection gives you extra peace of mind.
How overdraft protection works
In the event that insufficient funds are available in your checking account, overdraft protection will automatically transfer funds from savings accounts and/or lines of credit you designate.
Overdraft transfers are made in $100 increments. If this amount is not available, then the amount that is available will be transferred.
A $5 fee applies each day on which an overdraft transfer is made. Only one overdraft fee per day is assessed even if multiple overdraft sources, such as a savings account and a line of credit, are used.
How to sign up for overdraft protection
Just call Member Services or print and complete the overdraft protection authorization form. Sign and return it by mail or at any branch. You can apply online for a personal line of credit.
FAQs
When do automatic overdraft transfers occur?
Overdraft transfers occur at the end of the business day as part of VACU’s nightly processing.
How will I know when Overdraft Protection was used?
Transfers will appear on your monthly statement. You also can use Online Banking or QuikLine Phone Banking to check on your account activity.
Can I have less than $100 transferred from my regular savings account using Overdraft Protection?
To help VACU operate more efficiently, transfer amounts are standardized in increments of $100. If $100 is not available, then the amount that is available will be transferred.
Is there a fee for Overdraft Protection?
There is no fee to sign up for Overdraft Protection or if you never use it. A $5 fee is charged to your checking account each day on which an automatic overdraft transfer occurs. Only one overdraft transfer fee per business day is assessed even if multiple overdraft sources (such as a savings account and a line of credit) are used.
How can I avoid or minimize overdraft transfer fees?
Transfers will appear on your monthly statement. You also can use Online Banking or QuikLine Phone Banking to check on your account activity.
Online Banking and QuikLine Phone Banking are easy ways to keep tabs on your accounts and make your own transfers before an overdraft occurs. Allocating your deposits to checking and savings accounts in line with your normal spending habits can also help minimize the need for overdraft transfers. For example, if you have all of your direct deposit currently going to savings, you may wish to have the payee send it to your checking account instead.
I had signed up for Overdraft Protection transfers from my savings account and a line of credit. Will that stop if I don’t opt in for VACU to pay overdrafts on ATMs and debit card transactions?
No, it will not. Those are two separate processes.
What is the difference in Overdraft Protection and opting in for VACU to pay overdrafts on ATM and debit card transactions?
When members sign up for Overdraft Protection, they are authorizing VACU to automatically transfer funds from their savings account(s) or line of credit if their checking account does not have sufficient funds for a transaction. When members opt in for VACU to pay ATM and debit card overdrafts, they are authorizing VACU to consider taking their account negative and to charge an overdraft fee. Even if you already have Overdraft Protection, as a backup you may also wish to opt in for VACU to pay ATM and debit card overdrafts.
If I have Overdraft Protection from savings and I opt in to authorize the credit union to pay overdrafts on ATM and everyday debit card transactions, which process will occur first?
Overdraft Protection transfers will occur first. The additional process to consider paying ATM and everyday debit card transaction will be used only if you do not have sufficient funds after Overdraft Protection transfers.
I have Overdraft Protection from my savings account and had ample funds in savings when I overdrew my checking account. Why didn’t the funds transfer over to my checking account?
You may have exceeded 6 automatic transfers in the month. To avoid that situation in the future, you may wish to authorize additional accounts as overdraft sources or apply for a personal line of credit to draw from.