Beach Municipal FCU offers convenient overdraft protection options to assist our members when an account has been overdrawn. The two options listed below may be used separately or in combination. To learn more about our Overdraft Protection options, contact our Member Services Coordinators today!
Overdraft Protection Options
Savings: All members with a share draft (checking) account have overdraft protection coverage from their share savings accounts. In other words, if an item is presented for payment and there are not enough funds in your share draft account, the necessary funds will automatically be transferred from your share savings account up to the available balance free of charge. However, by federal regulation, electronic transfers including overdraft coverage from savings accounts are limited to six per month.
Line of Credit: An overdraft line of credit is a loan product that has an approved credit limit which protects you against accidental overdrafts. The approved amount stands ready to assist you when you need it. You owe nothing until funds are advanced to cover an item presented for payment and there are not enough funds in your share draft account. The necessary funds will be automatically advanced from the line of credit up to the available credit limit. Once funds are advanced, you will owe the amount advanced plus any interest that has accrued (interest on the line of credit begins to accrue from the date of advance). A minimum monthly payment is due within 45 days of the funds being advanced equal to 5% of the principal balance or $25 whichever is higher. Note: funds will not be advanced to cover an item if the loan is past due or the credit limit is at capacity.