Avoiding Overdrafts

What is an Overdraft and Overdraft Service?

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:

  • Linking your Primary Share Savings, to your checking account. A fee is not associated with this type of Overdraft.
  • Courtesy Pay – you must be eligible for this service and a $29 fee per overdraft transaction will apply.

What are my options?

You may avoid overdrafts on your account in these ways:

  • Keep track of your balance, deposits and payments, including those that are scheduled to occur automatically;
  • Balance your checking account with your monthly statement;
  • Sign up for direct deposit;
  • Keep a small cushion in your checking account.
  • 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.

What about Overdraft Protection Plans?

We also offer two overdraft protection plans:

  • For unexpected emergencies, you may opt-in to our Courtesy Pay* program, which will pay your overdraft and assess a fee for each transaction
  • Apply for an Overdraft Line of Credit – a loan advance tied to your checking account. If you overdraft, you’ll borrow that money against your line of credit, and pay it back monthly at a market interest rate.

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.

Call us at 413.525.2002 and speak with a member service representative about the options that are right for you.

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, or 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.