Have you ever made a mistake in your checkbook? To help avoid the embarrassment of checking account overdrafts and the potential for returned checks, Financial Plus offers two overdraft protection options.
Overdraft Protection by Loan is a line-of-credit which is accessed to cover any checking account overdraft up to the amount of your available credit limit.
Overdraft Protection from Savings allows the transfer of available funds from your designated Savings account(s) to cover any checking account overdraft.
You may elect to have both options and can designate the order in which funds will be accessed to cover checking account overdrafts.
Overdraft Protection Line-of-Credit
Should the need arise for you to issue checks in excess of your balance (or should you mistakenly issue a check without sufficient funds in your account), the Overdraft Protection Line-of-Credit could prevent not only the embarrassment of returned checks, but also the cost of NSF items.
Here’s how it works. If a check is written for more than what is in your checking account, the check will automatically be covered by advancing funds in $100 increments up to your available line of credit. You can apply for credit lines of $300, $500 or $1,000. Because this is a line-of-credit loan, your application must be approved before activation. Once approved, this amount becomes your personal reserve that you can use or not use any way you see fit.
It does not cost you anything to have the Line-of-Credit available for you. The only charge involved will be the finance charge if you access the line-of-credit by overdrawing your checking account. The Annual Percentage Rate is 12.5% (the daily periodic rate is .03425%). Payments are due on the 28th day of each month. The minimum payment will be 3½% of the outstanding balance, or $20.00, whichever is greater.
Overdraft Protection Line-of-Credit is an inexpensive way to have peace-of-mind when it comes to your checking account.
Overdraft Protection from Savings
The Overdraft Protection from Savings option authorizes the credit union to automatically transfer funds from your designated savings account(s) to your checking account to cover overdrafts. You may set-up multiple savings accounts with the overdraft transfer option and designate the order in which funds will be accessed. However, the entire overdraft amount, plus applicable fees (currently $3.00) as indicated in the Fee Schedule, must be available from one account, as partial transfers will not be made.
Regulations limit the number of automatic overdraft transfers, transfers and withdrawals made by telephone, by Touch Tone Teller, by Home Financial Services, or by transfer to an authorized third party to a total of six (6) per account, per month.
Write checks with confidence knowing that the convenience and peace-of-mind of Financial Plus Overdraft Protection service is at work for you. Download an Overdraft Protection Application to sign up for overdraft protection. For additional information, contact our Member Services department.
