If you have ever made a mistake by writing a check for more money than the available balance in your checking account, you are aware of the expenses and problems associated with inadvertent, non-sufficient funds items. We want to help you avoid these situations. You have options.
Option 1: Overdraft Protection (Link to Savings Account)
Your Tremont Credit Union savings accounts can be designated to protect your checking account from an unintended funds error. By electing to have your savings cover your Checking Account’s insufficient funds, you prioritize the order in which your savings accounts would be accessed. For example, you may want your Regular Savings account to be accessed before your Christmas or Vacation Club accounts. While a savings transfer is convenient, there are limitations under Regulation D when used for overdraft protection or pre-authorized payments/debits as explained below.
Regulation D: The Federal Reserve Bank’s Regulation D limits the number of certain transactions you can make from your savings accounts each month. Each individual savings account is allowed a total of six (6) Reg D transactions per month. They may be in the form of overdraft protection from your savings account to pay a check or cover a pre-authorized debit on your checking account.
A pre-authorized payment/debit is often used to pay a third party item, such as utility bills, credit cards, mortgages, insurance premiums and car payments. Many times a member will set up a pre-authorized payment from their savings account only to find that the transaction will be returned because they reached their Regulation D limit for the month.
Since Regulation D only places a limit on the savings account, we suggest setting up pre-authorized payments/debits from a checking account.
Option 2: Courtesy Pay (Link to Checking Account)
Courtesy Pay is available to eligible checking accounts. Rather than automatically returning, unpaid, any non-sufficient funds checks or automatic debits that you may have, we will consider, without obligation on our part, payment of your reasonable overdrafts, as long as you maintain your account in good standing.
Courtesy Pay may cover your insufficient funds items, with a limit of up to $800.00 for personal checking accounts and $1,500 for business checking accounts. If Courtesy Pay is used, our normal non-sufficient funds fee of $32.00 will apply to each item that would create an overdraft on your account. We will send you a notice each time an overdraft occurs.
Some Benefits Include:
- You may avoid very expensive charges from merchants for returned checks
- You may avoid the embarrassment and inconvenience of dishonored checks
- Courtesy Pay is available for Online Banking Bill Payment Transactions
There is no action on your part to sign up for Courtesy Pay, your account will have Courtesy Pay service as long as your account remains in good standing. Also, we may authorize ATM withdrawals and everyday debit card purchases which may overdraw your account if you have provided us with your consent to do so.
*Courtesy Pay is a discretionary service that a customer may opt-out of any time by notifying a Tremont CU Customer Service Representative