Overdraft Privilege

To apply for any of these services:

Call us at (661) 952-5945,
email us at ememberservice@edwardsfcu.org,
or stop by a branch.

Overdraft Protection

Edwards Federal Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Protection can help.

The choice is yours:

Overdraft Protection Link to Another Deposit Account you have at Edwards Federal Credit Union
$3 fee per transfer

Overdraft Protection Line of Credit*
Subject to fees + interest

* Subject to credit approval.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Edwards Federal Credit Union for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.

Overdraft Privilege

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

Transactions Covered with Overdraft Privilege Standard Coverage (No Action Required) Extended Coverage (Your Consent Required)**
Checks X X
ACH-Automatic Debits X X
Recurring Debit Card Payments X X
Online Bill Pay Items X X
Internet Banking Transfers X X
Telephone Banking X X
Teller Window Transactions X X
ATM Transactions X**
Everyday Debit Card Transactions X**

You can discontinue the Overdraft Privilege in its entirety by contacting us at (661) 952-5945 or sending us an e-mail at ememberservice@edwardsfcu.org.

To select Extended Coverage for future transactions:

Call us at (661) 952-5945, email us at ememberservice@edwardsfcu.org, or stop by a branch.

What is Overdraft Privilege?

Overdraft Privilege is a discretionary service provided to eligible accounts. It’s designed to help prevent your insufficient funds items from being returned or declined. With Overdraft Privilege, Edwards FCU may provide you a specific Overdraft Privilege limit depending on the type of account you have.

What’s the difference between Overdraft Privilege and other Overdraft Protection Programs?

Other overdraft protection programs such as a link to a savings account may be preferable but may be limited as to how many times a transfer may be made to cover an overdraft. Also, other overdraft protection programs require that funds be available. With Overdraft Privilege, items that would otherwise be declined or returned are paid and the debit is posted to your account.  For each item posted, a $29 Overdraft Privilege fee will be assessed. In the event your account is accidentally overdrawn, Overdraft Privilege is a useful addition if there are no other forms of overdraft protection available at the time of overdraft.

Am I eligible for Overdraft Privilege?

You may be eligible for overdraft privilege if you qualify for the below requirements.  Exclusions may apply.

  • Have a minimum of $1 in your savings account
  • Have a checking account that has been open for a minimum of 60 days
  • Are not delinquent on any of your Edwards FCU loans (if applicable)

Enrollment in the program for Checks, ACH debits, and recurring debit card transactions are automatic when you meet the above conditions. Edwards FCU may automatically pay items that would otherwise be returned due to insufficient funds by overdrawing your Share Draft (Checking) account not to exceed your Overdraft Privilege limit. If you do not wish to participate in this program, you may contact us to “Opt-out” of this service.

What type of overdrafts does Overdraft Privilege Cover?

Initially Overdraft Privilege will only cover Checks, ACH debits, and recurring debit card transactions, but with your consent Overdraft Privilege may also cover ATM withdrawals and everyday debit card purchases. You may at your request Opt-In to the payment of ATM and everyday debit card purchases. You may also rescind your consent at any time. Furthermore, you may Opt-out of Overdraft Privilege in its entirety. (Please keep in mind that ‘opting-out’ may result in Checks, ACH debits, and recurring debit card transactions being returned as NSF and your account will be charged a $29.00 NSF fee.)

What is my Overdraft Privilege Limit?

For eligible members, your courtesy pay limit on you Share Draft (Checking) account will be either $500 or $750 (inclusive of fees). The default Overdraft Privilege limit for share draft accounts is $500. For members with a direct deposit of at least $750 per month, your Overdraft Privilege limit will be increased to $750 so long as your direct deposit is reoccurring. Business Members are eligible for an Overdraft Privilege limit of $750.

How much does Overdraft Privilege cost?

For each overdraft that is posted to your account a $29.00 Overdraft Privilege fee will be assessed to your account. Although overdrafts are discouraged, Overdraft Privilege allows you to avoid excessive fees that a merchant may charge for returned items.

How long do I have to bring my account positive?

Once your account is overdrawn you will have a full 32 calendar days to bring your account current. However, if the account remains overdrawn after 32 calendar days your Overdraft Privilege will be suspended and a $15 collection fee may be assessed. All accounts must be paid current no later than 45 days unless arrangements have been made prior to 33 days overdrawn.

How will I know when I have used Overdraft Privilege?

You will be notified by mail the first time your Overdraft Privilege is used. Other notices will also be sent to you when your account has been overdrawn for 10, 20, and 32 days (including weekends and holidays).

** If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage.

Accounts will be charged the standard Overdraft fee of $29.00 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal, or other electronic item that is paid and $29.00 for items returned. An overdrawn balance must be repaid within 32 days. We may not pay items under your Overdraft Privilege if you do not maintain your account in good standing by bringing your account to a positive balance within every thirty-two (32) day period for a minimum of 24 hours, if you default on any loan or other obligation to Edwards Federal Credit Union or if your account is subject to any legal or administrative order or levy.

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