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Overdraft Protection

Avoid the expenses and inconvenience of overdrafts with overdraft protection from Raritan Bay FCU. Overdraft protection is available on our checking accounts using your share savings account, overdraft advance or pre-approved line of credit. Below are examples of the overdraft protection options.

Please note: Beginning July 1, 2010, ATM and one-time debit card transactions/purchases will not be covered by Overdraft Advance unless you OPT-IN. Click Here for the OPT-IN form.

 

Example of Overdraft Protection using Share Savings Account: If you make a purchase in the amount of $150 but you only have $100 in your checking account, the credit union will automatically transfer the funds from your primary share savings account into your checking to avoid the check/debit from being returned. With this option, each member is allowed 6 share savings to checking transfers a month before there is a $25 fee for each transfer there after. Transfers not done automatically, ie Home Banking, Teller-Phone, in-person or over the phone transfers aren't included in the 6 transfers per month. These transfers are free of charge to all our members.

Example of Overdraft Protection using Overdraft Advance: If you make a purchase in the amount of $150 but only have $100 in your checking account, the credit union will overdraw your account and charge you a fee but the purchase will be paid and not returned to the merchant. Thus avoiding any items returned to you

Example of Overdraft Protection using Pre-Approved Line of Credit: If you make a purchase in the amount of $150 but only have $100 in your checking account, the credit union will deduct the money from your line of credit and deposit it into your checking to cover the check/debit. There is no charge for this option, however, you must fill out a loan application and be approved for the line of credit.

Effective July 1, 2010, New Federal Reserve rules give debit and ATM card users additional options regarding overdrafts. With these new regulations, RBFCU will give you the opportunity to make the decisions about overdrafts for transactions made with your debit or ATM cards. You will have the option to OPT-IN or OPT-OUT of having your ATM and debit transaction covered by Overdraft Protection. For more information about the new regulations, click here.