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.

Here are your Overdraft Coverage Options:

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
 $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 a line of credit may be a less expensive option than using your Member Privilege to pay an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts.  Use our mobile banking app, online branch, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov
  • The $30.00 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 $30.00. 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.
  • If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Signature Federal Credit Union will charge a NSF (Returned Check Fee) each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Signature Federal Credit Union may pay the item, and, if payment causes an overdraft, we will charge a Member Privilege Fee.
  • For members 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 or 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 Fee)s assessed.
  • Although under payment system rules, Signature Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Signature Federal Credit Union 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 and may also help you avoid overdrafts in excess of your available balance that may result in suspension of your debit card. 
  • Signature Federal Credit Union authorizes and pays transactions using the available balance in your account. Signature Federal Credit Union may place a hold on deposited funds in accordance with our New Membership Account Disclosure, Fee Schedule and Share Account Disclosure, which will reduce the amount in your available balance.  The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Member Privilege limit and any available Overdraft Protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Member Privilege Limit. For accounts with Extended Coverage, the Member Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
  • Please be aware that the Member Privilege amount is not included in your available balance provided through online branch, mobile banking app and ATMs.
  • Signature Federal Credit Union 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, an Member Privilege Fee may be assessed.
  • Except as described herein, Signature Federal Credit Union 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).
  • Signature Federal Credit Union may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Member Privilege limit (as described herein). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Member Privilege limit, is positive.
  • Signature Federal Credit Union may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
  • Signature Federal Credit Union may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated. It is your responsibility to keep your account information up to date.
  • If your debit card(s) is/are suspended, you will not be able to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s), or at the ATM. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
  • A Member Privilege limit of $500 or up to $750 depending on the account type may be granted to eligible Consumer Checking accounts after the account has been opened for at least 30 days.
  • A Member Privilege limit of $500 may be granted to eligible Business Checking accounts after the account has been opened for at least 30 days.
  • Member Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Member Privilege may be suspended if you default on any loan or other obligation to Signature Federal Credit Union, 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.
  • 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, Fee Schedule and Share Account Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

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