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Ensure your checking account is covered - sign up for overdraft protection from your savings account, money market account or credit line. When you have overdraft protection on your checking account, you authorize the automatic transfer of funds from one of your other Alaska USA accounts in the event that your checking account is overdrawn. How do I benefit? Even the most organized person can have a hiccup with a checking account, especially if there are joint owners on the account writing checks and using Visa Check Cards. Each time you don't have sufficient funds in your account to cover a check that you've written, Alaska USA assesses a $20 non-sufficient funds (NSF) fee. (The national average for other financial institutions is over $25!) Additionally, the merchant where you wrote the check will most likely charge you as well, usually at least $25 to $30. You can save on these types of charges, as well as embarrassment and possible negative effects on your credit, by signing up for overdraft protection. What account can I use for overdraft protection? You may designate your savings account, money market account, credit line loan or home equity line of credit to provide overdraft protection for your checking account. What does it cost? It costs nothing to select overdraft protection for your account - and you can avoid the worry of “bouncing” a check. However, when overdraft protection is used to cover a draw on your account, there is a fee of $5 for each transfer from your savings or money market account. If your credit line is used, the first three transfers in a month are free. Further transfers that month cost $5. (Remember that when you use your credit line, you do pay interest on any draw you make). Is there a limit on how many times I can use overdraft protection? It depends on the account you've designated for overdraft protection. There are no limits if you're using a credit line to cover your account. If you are using your savings or money market account, you are limited to six transfers a month because of federal regulations. Will the credit union take funds from my money market or credit line if I don't have enough in my savings account to cover the overdraft? No. When covering an overdraft, Alaska USA will only use the account you've previously designated for overdraft protection. However, you may change your designated overdraft protection account at any time by calling the Member Service Center. Is there a minimum amount that is drawn from my designated account when overdraft protection kicks in? It depends on the type of account you've designated for overdraft protection. Transfers from a credit line loan will be rounded up to the nearest $100 amount that is sufficient to clear the overdrawn checking account balance. Transfers from savings or money market accounts are equal to the amount needed to cover the draft on your checking account, leaving your account balance at zero until you deposit or transfer additional funds. How will I know when an overdraft has been covered? Any time that overdraft protection has been activated, Alaska USA will mail you a notice. You can also monitor your account balance anytime through UltraBranch®. How can I sign up for overdraft protection? Sign up at a branch or call the Member Service Center. Highlights
AKUSA 02362-I R12/20/04 |
Overdraft protection
Overdraft protection can help you avoid embarrassment, poor
credit and costly fees. 