OVERDRAFT SERVICES


When life happens, we've got you covered.

Have you ever made a purchase and then realized you didn’t have enough funds in your account to cover it? We've all been there and It's not a great feeling, but University Federal Credit Union has your back. Here are three services that can help you in case you ever encounter an overdraft.

Overdraft Protection

Connect your checking account to your Primary Savings account

If your balance drops below zero, funds can be pulled automatically from your Primary Savings to cover the purchase. This can happen up to six times per month, and is a free option available with any of our personal checking accounts. Overdraft protection applies to all transactions and may help prevent overdrafts by automatically transferring your money from your savings account into your checking account.

To apply for Overdraft Protection, call us at 801-481-8824, send a secure message through online banking, or visit any University Credit Union branch.

Overdraft Line of Credit

Apply for an Overdraft Line of Credit for extra money when you need it

An Overdraft Line of Credit is a loan that helps protect your checking account from overdraft fees. It kicks in when a transaction overdraws your account. Once an overdraft has occurred, this credit line automatically transfers the funds necessary to cover the transaction in your checking. This option requires a loan application in order to determine eligibility.

Because an Overdraft Line of Credit is effectively a personal loan, this service is subject to credit approval and interest rates. To apply for an Overdraft Line of Credit, you can call 801-481-8824, send a secure message through online banking, or visit any University Credit Union branch. You can also apply for an Overdraft Line of Credit online here. 


Overdraft Privilege*

We understand that life happens. That's why we offer Overdraft Privilege as a lifeline for unexpected overdrafts. Here's how it works:

Overdraft Privilege is a service offered for all consumer checking accounts. The service is automatically activated for all checking accounts where the primary account holder is at least 18 years old. After all other overdraft options have been exhausted, Overdraft Privilege covers transactions that would otherwise be returned due to an insufficient available balance. This means Overdraft Privilege allows you to overdraft your account up to your coverage limit. 

There is no cost to take advantage of this service and, even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage. Although using Overdraft Privilege protects you from overdrawing your account, if you choose to use the service, a $25 fee will be assessed per transaction. You may refer to our fees page for more information.

Overdraft Privilege has two available tiers: Standard Coverage, which is included with every opened checking account (where the primary account holder is at least 18 years old) and, Extended Coverage, which requires an opt-in. The following shows the transaction types that are protected under the two coverage tiers. 

Overdraft Privilege Standard Coverage

  • checks
  • ACH transactions (automatic debits)
  • recurring debit card transactions
  • online bill pay items
  • teller window transactions
  • telephone banking transactions
  • internet banking transactions

Overdraft Privilege Extended Coverage

  • checks
  • ACH transactions (automatic debits)
  • recurring debit card transactions
  • online bill pay items
  • teller window transactions
  • telephone banking transactions
  • internet banking transactions
  • ATM transactions
  • everyday debit card transactions

Opt-In Requirement

Overdraft Privilege Standard Coverage will not cover debit card transactions. For ATM and debit transaction coverage, you must opt-in for Overdraft Privilege Extended Coverage. For more information on how to opt-in for Extended Coverage, please download and review the Overdraft Privilege Extended Coverage disclosure form.

download form

 

Opt-Out of Overdraft Privilege Options

You can amend or opt-out of any or all overdraft protection and Overdraft Privilege options by calling us at (801) 481-8824.

Even if you have previously elected to opt-in to Overdraft Privilege Extended Coverage for ATM and debit card transactions, you may revoke your consent for this coverage at any time by calling (801) 481-8824. You may also revoke consent via the following methods:

  • log into online banking, go to settings and select additional services
  • visit any University Federal Credit Union branch
  • send a secure email using your online banking account
  • mail a written request to Post Office Box 58025, Salt Lake City, Utah 84158

Additional Information


Available Balance, Debit Card Holds and Transaction Posting

We use the available balance when determining whether a transaction will cause your account to overdraw and for charging Overdraft Privilege and NSF fees.

LEARN MORE ABOUT AVAILABLE BALANCE

Authorization holds for debit card transactions impact your available balance in your checking account. For example, if you conduct an online transaction with your debit card or choose “Credit” and sign for a point-of-sale transaction the merchant will send an authorization request and we will reduce your available balance by placing an authorization hold on those funds.

LEARN MORE ABOUT DEBIT CARD AUTHORIZATION HOLDS

It is important to understand how transactions are handled so that you know how much money you have available in your checking account. To learn more about how credits or deposits of money into your account and debits or payments out of your account are handled, please refer to the information below or contact us if you have specific questions.

LEARN MORE ABOUT HOW TRANSACTIONS ARE POSTED 

*Overdraft Privilege (formerly known as Courtesy Pay): Primary account holder must be 18 years of age.  Member must be in good standing (including no delinquent loans, active bankruptcies, abuse, charged-off loans or shares, etc.).