Overdraft Protection

Emergencies happen.  That’s why it’s important to have a financial safety net.  With overdraft protection, you can make sure checking and debit card transactions are covered – even when your account lacks sufficient available funds.

Avoiding Overdrafts

Avoiding Overdraft and Bounced Check Fees

There are a variety of ways to avoid overdraft and bounced-check fees. The best way is to manage your account so you don't overdraw it. Here's how:

  • Keep track of how much money you have in your checking account by keeping your check register up-to-date. Record all checks when you write them and other transactions when you make them. And don't forget to subtract any fees.
  • Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases and online payments.
  • Don't forget about automatic bill payments you may have set up for utilities, insurance or loan payments.
  • Keep an eye on your available balance. Remember that some checks and automatic payments may not have cleared yet.
  • Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling the credit union or by checking online or at an ATM. Note: your Overdraft Privilege amount will not appear as a part of your balance.

Of course, sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees.

Additional Overdraft Protection Sources

Another option you have at Baylands is to link your checking account to a line of credit or savings account*. If you choose to do this, funds are automatically pulled from the linked account in the event your checking account has insufficient available funds. There are no fees when you utilize this service, but there may be interest charges if your checking account is linked to a line of credit.

* Regulation D (Reg D) is a federal regulation that places a monthly limit on the number of transfers you may make from your deposit accounts (other than checking).  In any given month, you may be limited to no more than six preauthorized, automatic, electronic or telephone transfers from a deposit account governed by Regulation D.  For more information, please contact a Member Service Representative.

An overdraft line of credit is a loan attached to your checking account that provides a safety net in the event you over spend your checking account or have an emergency. Instead of bouncing checks or having a purchase declined and paying fees, you can borrow a few dollars at a time (up to your approved limit) to cover the transaction.  Transfers from your overdraft line of credit happen automatically to clear checks or process transactions.

  • Credit limits range from $300 - $1500
  • Advances made are subject to the available loan amount and amount needed to cover the item
  • Enjoy an open-ended term
  • Low fixed interest rates - The overdraft protection loan does not transfer unless an overdraft occurs, therefore, you don't pay interest until you actually spend the money.

Enjoy peace of mind today knowing you’re covered with a Baylands Overdraft Protection loan. Application is easy!

Loan Application Loan Rates

Overdraft Privilege is a simple and convenient way to help ensure your checking and everyday debit card transactions clear in the unlikely event your available balance runs low. Consider it a last line of defense when other sources of funds have been exhausted. Either way, it’s there to help you manage a potentially uncomfortable situation with grace.
Benefits of Coverage:

  • Provides Security—may provide funds to pay unexpected expenses.
  • Offers Convenience—may provide uninterrupted coverage if you lack sufficient funds.
  • Eliminates Embarrassment—helps you avoid the awkwardness of a merchant declining your transaction.
  • Acts as Last Line of Defense—you can still be covered after other overdraft sources have been exhausted.

Plus, there are no fees to sign up, and no fees if you never use Overdraft Privilege.

How does it work?

Overdraft Privilege is a discretionary overdraft service.  We are not obligated to pay any item presented for payment if your account does not contain sufficient available funds; however, as long as you maintain your account in "good standing," we may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy.

For overdraft privilege consideration, your account is in "good standing" if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all credit union fees and charges); (2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account; and (4) there are no loan or Visa delinquencies.

How quickly must I repay my Overdraft Privilege? 

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter informing you that your Overdraft Privilege (ODP) limit has been suspended and additional items will be returned. 

How soon can I use my Overdraft Privilege? 

If you are a new account holder, you may be able to use the Overdraft Privilege service 90 days after the account is opened, assuming your account is in "good standing" as defined above.

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 do not authorize and pay overdrafts for the following types of transactions unless you ask us to (Opt-In Form required):

  • 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 Baylands Family Credit Union pays my overdraft?

Under our standard overdraft practices: We will charge you a fee of up to $35 each time we pay an overdraft, and there is a limit of 5 overdrafts per day we charge you for overdrawing your account.

What if I do not want to have Overdraft Privilege on my share draft account? 

If you would like to have this service removed from your account, please contact a Member Service Representative.

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

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, an Overdraft Coverage Consent form is required.  Please contact a Member Service Representative for assistance.

Completed forms can be mailed to: Baylands Family Credit Union, Attn: Member Services, PO Box 392, West Point, VA 23181. You may revoke your authorization at any time by mail, online or in person at one of our offices.