Life happens. You make an honest mistake in your checkbook and it leaves you a few dollars short to cover your outstanding checks. An automatic loan payment comes due and you didn't have time to make a deposit. Or you use your debit card the day before payday, not knowing your spouse already used up the money in the account. That is why iQ Credit Union offers Overdraft Protection.
At iQ Credit Union, we encourage you to manage your finances responsibly. But we understand that sometimes things happen and unforeseen circumstances can leave you with too little cash in your checking account. The best solution is to link your checking account directly to your savings account and/or Personal Access Line of credit (PAL Account) to cover these situations. Then, if your account becomes accidentally overdrawn, money is automatically redirected from the back-up accounts, up to your limit. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience. Linking your accounts can help prevent this.
An overdraft occurs when you do not have enough money in your account to cover a transaction, but iQ Credit Union allows the transaction to be authorized and paid. We currently cover your overdrafts with our Courtesy Overdraft Protection.
Courtesy Overdraft is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit. Courtesy Overdraft will cover checks, automatic debits, bill payer debits, and cashing a check in an iQ Credit Union branch. This saves you the potential of additional charges from the merchant. If the payment was for a loan, Courtesy Overdraft protects your credit rating by ensuring your payment is not reported as past due..
A new regulation requires us to make some changes to services on your account. Effective August 15, 2010, the everyday purchases you make with your debit card and your ATM transactions will no longer be covered by our Courtesy Overdraft Protection. If you do not have enough money in your account or the funds are not available, your card will be denied.
As of August 15, 2010, Card Overdraft extends your overdraft service to cover ATM withdrawals and everyday debit card transactions. Card Overdraft can prevent those embarrassing moments when a mistake or emergency happens when using your debit or ATM card. This service requires you to Opt-In or these transactions will be denied when there are insufficient funds in your account.
To Opt-In online click here.
While it is not an invitation to overdraw your account, it is an added layer of safety should you accidentally present items for more than you have in your account. With Courtesy Overdraft and Card Overdraft, the Credit Union may pay an item rather than returning it. We recommend you check your ATM balance prior to making a withdrawal to avoid a fee. There is a fee for each item covered under Courtesy Overdraft.
After August 15, 2010, our current Courtesy Overdraft Protection will still cover your account for ACH withdrawals, check and recurring debit card transactions.
Call us for more information
We are happy to review Courtesy Overdraft and Card Overdraft and their features with you, along with giving you other options to add convenience and ease to your account. Please call us at 800-247-4364.
Click here to review Overdraft Protection Disclosure
Opt-In online click here.