Overdraft Protection

Photo of a man with a surprised expression

What You Need to Know

What You Need to Know about Overdrafts and Overdraft Fees

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:

  1. We have standard overdraft practices that come with your account.
  2. We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We will not authorize and pay overdrafts for the following types of transaction without your consent:

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Somerset Federal Credit Union pays my overdraft?

Under our standard overdraft practices:

  • We will charge you a fee of $25 each time we pay an overdraft.
  • We will not charge you a fee if your account is overdrawn by $10 or less.

What if I want Somerset Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize Extended Overdraft Privilege to pay overdrafts on ATM and everyday debit card transactions, opt in by calling us at 508-678-2851, emailing us at  visiting us in branch, or completing our Overdraft Protection Form.