How to Avoid Overdraft Fees

Overdrafting an account can be an embarrassing experience, especially if you don’t have enough funds to cover overdraft fees. Luckily, there are ways you can protect yourself from overdraft and non-sufficient funds (NSF) fees, and they’re readily available to you as a Florida Credit Union member.

Link Your Savings and Checking Account

Florida Credit Union members with a checking and savings account can link them in order to cover overdrafts. If your checking account doesn’t have enough funds to cover a transaction, like a purchase at a store or a grocery haul, your savings account will chip in the necessary funds to complete the transaction. In this scenario, you can transfer funds for free if you have online and mobile banking or would only pay a nominal transfer fee, as opposed to a larger overdraft fee, though this may ultimately be dependent on your account type.

Link Your Personal Line of Credit

Members can also link their checking account with a personal line of credit, should they have one. Much like in the scenario with a savings account, your personal line of credit would help to cover you if there aren’t enough funds in your checking. As typical of lines of credit, you only pay interest on the amount you actually use. The benefit of this option is that your savings are left untouched, as you’re borrowing money instead.

 

Avoiding Overdrafting

The best protection from overdraft fees is not overdrafting in the first place!
 

We recommend building good money habits and being mindful of how much money you have in your account. FCU Anywhere users have access to their money anytime, anywhere. Make it a habit to check your balance a few times a week, if not daily, and stay aware of your monthly expenses. With real time access to your money, you can always double-check if a purchase is possible, no matter where you are.
 

Lastly, ensure your online banking alerts are on! Visit the “Alerts” widget in FCU Anywhere to see the different kinds of alerts you have available. From balance summary to transaction alerts, you’ll always be in tune with your finances. Customize your alerts further by selecting the delivery method for your alerts. They can be via email, phone or both!

Next Steps

If you wish to learn more about our overdraft protection options, visit our overdraft protection page, which has a few real world examples demonstrating where your savings or personal line of credit could protect you from overdraft fees. Ready to apply? You can do so online, by phone or at a branch!