Overdraft Options at RFCU

Whether it's a mistake balancing your checkbook or an unexpected expense, we've all been in the situation where we miscalculate our checking account balance.  Sometimes that can bring the account into an overdraft or negative balance.  An overdraft occurs when you do not have enough money in your account to cover a checking account transaction.  When that happens you can cover your overdrafts in three different ways:

Automatic Transfer from Savings

Automatically transfer money from your savings account to cover overdrafts in your checking account.

Fee for this service:  This service is free.

To enroll:  Contact us at Webmail@RFCU.com, call 781-878-0232, or stop into your local branch. 

Overdraft Line of Credit

Apply for a line of credit that will be automatically accessed to cover overdrafts in your checking account.

Fee for this service:  With a line of credit, you are simply borrowing from this line and you'll be subject to interest charges, just like any other loan.

To enroll:  Call 781-878-0232, visit your local branch, or get started by filling out a line of credit loan application.  

Overdraft Service

If you are a member in good standing, you can opt in to the overdraft service program immediately.  With this service, if you do not have enough money in your account for a check, pre-authorized withdrawal, ATM or debit transaction, RFCU will authorize and pay these overdrafts.

Fee for this service: You will be assessed a fee of $32 for this service ($14 for senior citizens) each time we pay an overdraft with this service. For debit transactions under $11, there is no charge. We can impose up to 6 overdrafts in one day. There is no daily fee incurred for a negative balance.

To enroll: Call 781-878-0232 or visit your local branch to opt-in to this service. You may also opt-out at any time by contacting us in the same way.


Tips for Avoiding Overdraft Fees

As a consumer, there are ways to manage the fees you incur for your banking services. One of the best ways to do that is to actively manage your checking account to avoid overdraft fees.  Here are a few ways we can help:

Direct Deposit

Setting up direct deposit of your payroll or other recurring pay sources is a good way to manage your checking account balance.  You won't need to worry about finding time to get to the credit union to deposit a paper check and very often, direct deposit is available immediately, where paper checks can take a day or more to become available. Set up direct deposit.

Online Banking

Online Banking gives you a full view of your account activity and balance information. You can log in any time, day or night, to see your balance information, what has cleared, what is pending, and more. Enroll in online banking.

Mobile Banking

With your account information at your fingertips, you'll be in control of your banking at all times. Check balances and transaction history; make transfers between accounts; and schedule text alerts. Learn more about mobile banking.

Text Alerts

Set up text alerts so you can be notified when your account balance is low, or when a large transaction clears your account. A brief message will be sent via text to your phone, and you'll be in the know. Find out about text alerts.


Understand Available Balance vs. Account Balance

Account Balance

Your account balance is the total amount of funds in your account at a given time.  This balance may change throughout the day, as transactions are presented at the credit union.  This balance is not a true representation of what is available for spending as it does not account for purchases, check holds, fees, or other charges that you have made.

Available Balance

Your available balance displays the actual amount of funds in your account, available for use.  The available balance is immediately updated all day long to reflect charges, fees, holds, pending transactions, and cleared deposits as they happen.  The credit union also uses available balance to calculate overdrafts should you exceed your limits.

If your 'account balance' is sufficient to pay your transaction, but your 'available balance' is not, we may assess a fee of $32 ($14 for senior citizens), according to our fee schedule.

Available and Account Balance and Overdraft Service

When the 'available balance' in your account is not sufficient to pay a transaction (check, in -person withdrawal, or other debit card transaction) presented for payment, we may either:

1. Pay the transaction (if you have opted in to the overdraft service) and you will be charged an overdraft fee of $32 ($14 for senior citizens), according to our fee schedule.

2. Or, we may return the transaction unpaid (if you have not opted in to the overdraft service), due to insufficient funds and you may be charged a returned item fee of $32 ($14 for senior citizens), according to our fee schedule.