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

Important Information About Overdrafts and Member Privilege:

  1. Cost-Saving Alternatives
    • Linking your checking account to another deposit account or a line of credit may be more affordable than paying overdraft fees.
    • One larger overdraft typically results in one fee, while several smaller overdrafts may each incur a fee.
    • Stay on top of your balance with our mobile, online, and telephone banking tools.
    • For financial education, visit www.mymoney.gov.
  2. Understanding Fees
    • A $30 fee is charged for each item that overdraws your account or is returned unpaid.
    • If multiple items are processed when your account is overdrawn, each one will result in a separate $30 fee.
    • These fees are included in your Member Privilege limit and may cause your account to go further into overdraft.
  3. Government Benefit Recipients
    • If you receive federal or state benefits and do not want overdraft amounts or fees deducted from your deposits, call us at (800) 336.0284 ext. 684 to opt out of Member Privilege.
  4. Re-Presented Items
    • If a transaction is returned due to insufficient funds and is presented again, we will charge a $30 NSF (Non-Sufficient Funds) fee each time.
    • Each fee reduces your Available Balance and could increase your overdraft.
    • If a re-presented item is paid and causes an overdraft, a Member Privilege Fee may apply.
  5. Daily Fee Limits
    • There is no daily cap on the number of Member Privilege Fees that may be charged for consumer accounts.
  6. Transaction Posting Order
    • Deposits are generally posted before withdrawals.
    • Different transaction types (e.g., checks, debit card purchases, ACH) post in various ways and at different times.
    • The order of posting can affect your balance and may result in overdraft or NSF fees.
  7. Member Privilege is Discretionary
    • Member Privilege is not a guaranteed line of credit. It may be withdrawn at any time without notice.
  8. Your Responsibility
    • All account holders are responsible for repaying any overdraft amounts and related fees.
    • These amounts are due immediately upon our request.
  9. Debit Card Transactions
    • Some debit transactions may be paid due to network rules, even if not authorized, and may cause overdraft fees.
    • ATM and everyday debit card transactions will only be authorized if your Available Balance (plus any applicable Overdraft Coverage) can cover them.
  10. Extended Coverage Option
    • If you opt in to Extended Coverage, we may authorize and pay everyday debit card and ATM transactions using your Member Privilege limit.
    • This may result in additional fees.
    • You may revoke Extended Coverage at any time.

Understanding Your Account Balance

You have two balances:

  • Ledger Balance: Shows all posted deposits and withdrawals. It does not include pending transactions.
  • Available Balance: Reflects your Ledger Balance minus any pending debits or holds. This is the balance used to authorize transactions.

Balance Usage by Transaction Type

  • Checks, ACH, and recurring debit card payments: Available Balance + Member Privilege limit + Overdraft Protection.
  • ATM and everyday debit card purchases (Standard Coverage): Available Balance + Overdraft Protection only.
  • ATM and everyday debit card purchases (Extended Coverage): Available Balance + Overdraft Protection + Member Privilege limit.

Important Notes

  • Holds on deposits or pending transactions may make your Available Balance appear higher than it really is.
  • The Member Privilege limit is not reflected in your Available Balance on online, mobile, or ATM banking.
  • A hold is placed for authorized debit transactions until settlement (usually 2 business days). If the actual charge is higher, it may result in a fee.

Member Privilege Limits

  • Eligible Consumer Checking Accounts: $500 or up to $750, depending on the account type.
  • Eligible Business Checking Accounts: $500.

Suspension of Member Privilege

  • Member Privilege may be suspended if:
    • You default on any loan or obligation with us.
    • Your account is subject to legal action.
    • Your account is not brought positive within 32 days for at least one business day.

To reinstate Member Privilege, bring your account positive for at least one business day.

Questions? Call us at (800) 336.0284 ext. 684 or email memberservices@signaturefcu.org