Overdraft Options for your Checking Accounts.

Life happens! Signature Federal Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Signature Federal Credit Union offers several services below to help you avoid returned checks, overdrafts, and declined transactions.

Overdraft Coverage Options
Service Cost
  1. Overdraft Protection Link to Another Deposit Account you have at Signature Federal Credit Union
 $0.00 fee per transfer
  1. Overdraft Protection Line of Credit1, 2
 Subject to Interest Charges
  1. Member Privilege (available after 90 days)
 $30.00 Member Privilege Fee per item

1Call us at (800) 336.0284 ext.684, email us at MemberServices@SignatureFCU.org to apply for these services; 2 subject to credit approval.

  1. Overdraft Protection Link to Another Deposit Account: applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Signature Federal Credit Union.
  2. Overdraft Protection Line of Credit: applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from a line of credit you may have at Signature Federal Credit Union for a finance charge. Please note that overdraft lines of credit are subject to credit approval. 
  3. Member Privilege: allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Member Privilege is still available as secondary coverage if the other protection source is exhausted. Please review the “What Else You Should Know” section included with this letter for other important information.
Transactions Covered with Member Privilege Standard Coverage (No action required) Extended Coverage (Your consent required on consumer accounts)*
Checks Included Included
ACH – Automatic Debits Included Included
Recurring Debit Card Payments Included Included
Online Bill Pay Items Included Included
ATM Transactions   Included*
Everyday Debit Card Transactions   Included*

If you would like to select Extended Coverage for future transactions:

*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. if you already have Extended Member Privilege coverage, it is not necessary to request it again.

You can discontinue the Member Privilege in its entirety by contacting us at (800) 336.0284 ext. 684 or by sending us an email to MemberServices@SignatureFCU.org

What Else You Should Know:

  • A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, internet, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov
  • The $30 Member Privilege Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Member Privilege Fee or a NSF (Returned Check Fee) of $30. All fees and charges will be included as part of the Member Privilege limit amount. Your account may become overdrawn more than the Member Privilege limit amount because of a fee.
  • Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Member Privilege Fee from funds that you deposit or that are deposited into your account may call us at (800) 336.0284 ext. 684 to discontinue Member Privilege.
  • If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Signature Federal Credit Union (“We”) will charge a NSF (Returned Check Fee) each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a NSF (Returned Check Fee) each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a NSF (Returned Check Fee), the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge a Member Privilege Fee. We may use the terms “item” and “transaction” interchangeably.
  • For consumer accounts, there is no limit on the total Member Privilege Fees per day we will charge.
  • Our general policy is to post items throughout the day and to post deposits before withdrawals. Force-paid items from prior day are processed in time stamped order, outgoing wire transfer and cash withdrawals post in real time, over-the-counter items post in real-time, ATM withdrawals post in real-time, POS and everyday debit card transactions post in time-stamp order, ACH withdrawals post in order of presentment, In-clearing checks post low dollar amount to high dollar amount, automatic withdrawal transactions and other miscellaneous items post by end of day; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Member Privilege Fees or NSF (Returned Check Fees) assessed.
  • Member Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in The New Membership Account Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Member Privilege Fees for transactions that we would otherwise be required to pay without assessing a Member Privilege Fee. However, this would allow us to authorize transactions up to the amount of your Member Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

  • We authorize and pay transactions using the Available Balance.
  • Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
  • Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
  • The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Member Privilege limit and any available Overdraft Protection.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Member Privilege limit.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Member Privilege limit.
  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will
    reduce the amount in your Available Balance.
  • Please be aware that the Member Privilege amount is not included in your Available Balance provided through online banking, mobile banking or Signature Federal Credit Union’s ATMs.
  • We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, a Member Privilege Fee may be assessed.
  • Except as described herein, we will not pay items if the Available Balance in your account (including the Member Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

  • A Member Privilege limit of $500 or up to $750 depending on the account type may be granted to eligible Consumer Checking accounts when opening a new account.
  • A Member Privilege limit of $500 may be granted to eligible Business Checking accounts when opening a new account.
  • Member Privilege may be suspended if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the Member Privilege limit reinstated.

If you have any questions about Overdraft Protection or Member Privilege, please call our Member Services Department at (800) 336.0284 ext. 684 or email us MemberServices@SignatureFCU.org