What is Overdraft Protection?

Sometimes we end up spending more than we have available in our checking account, pushing us into a negative balance. We get it! Although it’s not necessarily on purpose, it happens to the best of us. At Clearview, we have overdraft protection plans to help you when this happens. But what does enrolling in overdraft protection really mean for you and your finances?

In this blog article, we’ll take a look at everything you need to know about overdraft protection.

What is an overdraft?

An overdraft occurs when you don’t have enough money available in your account to cover a transaction, but your financial institution pays for it anyway. In other words, your financial institution covers the shortage so your transaction goes through, but then requires you to pay back that amount, and may charge a fee for this service.

This is where overdraft protection comes into play! If you don’t have overdraft protection, your transaction may be declined and you may be assessed a nonsufficient funds fee.

What are Clearview’s overdraft protection programs?

1. Overdraft Protection Transfers allows automatic transfers for no fee from your savings, Money Market, and Member's Choice accounts, or PowerLine and Home Equity Lines of Credit. These transfers are made in increments of $100, and are subject to available balance/credit line limits on the account being transferred from.
2. All eligible Clearview checking accounts are qualified for Courtesy Pay which allows us to authorize and pay overdrafts for automatic bill payments, checks, and other transactions made using a checking account number. This protection plan is only available to qualified members that are at least 18 years old. There’s a $35 fee each time we pay an overdraft for you.
3. Extended Courtesy Pay gives you all the perks of Courtesy Pay with a few additional benefits, including allowing us to pay overdrafts on ATM and everyday debit card transactions. You must opt-in to this program via our online form or stopping by a financial center.

Are there overdraft limits?

There are limits (maximum dollar amount threshold) up to which we’ll cover transactions, for the Courtesy Pay and Extended Courtesy Pay programs. At Clearview, we’ve implemented an automated system that will determine these thresholds on a continual basis. This means your overdraft limit may change as frequently as daily.

How do I avoid an overdraft?

Here are a few tips to help you avoid dipping into the negatives:

• Be sure to set up alerts within online banking to notify you if your accounts are reaching a low balance.
• Make it a habit to check your balances often! Money Management can help you connect, share, and control all of your accounts (and loans) in digital banking at no cost.

We understand that overdrawing your checking account isn't something you plan on doing ahead of time, but we also know that life happens. Whether you accidentally spend more than you have on hand or you simply forget about your automatic Netflix payment which pushes you into the negatives, having overdraft protection can help cover those transactions.