What are overdrafts?

An overdraft happens when you spend more money than what is available in your bank account. For example, if you have $40 available and a $60 payment goes through, your account could become overdrawn by $20.

Overdrafts can happen with checks, automatic bill payments or other electronic transactions. Depending on your account settings and available overdraft options, the transaction may be paid, covered by a linked backup account or declined.

TTCU offers features like Overdraft, Courtesy Pay, Courtesy Pay Plus and account alerts to help members manage in situations where the balance gets low. These options can provide flexibility when unexpected expenses happen.

TTCU Overdraft Features and Benefits

Put these flexible features to work and take the headache out of overdrafts!

Courtesy Pay

You're covered when the unexpected happens:

  • $100 Safety Net – Drop up to $100 below zero with no overdraft fees! Qualifying account and direct deposit required.*
  • $500 Overdraft Limit ($200 for Fresh Start checking)
  • $24 fee per transaction if you exceed the safety net amount.

Overdraft Protection

Link your checking to a backup account for peace of mind:

  • Savings or Checking Account: Automatically transfer funds from a designated account to cover charges.
  • Line of Credit: Use your approved credit line to cover overdrafts.

Alerts

Need help keeping track of your money? A good strategy is to set an alert that notifies when your account drops below a certain point.

  • Take control by setting up your own custom alerts in the mobile app or online banking.**
  • Get unlimited notifications based on rules that you set.
Checking that's got you covered.

Courtesy Pay

With Courtesy Pay, you have the flexibility to temporarily drop below zero on your checking account. Plus, stay free of overdraft fees as long as your account balance does not drop below the safety net amount.

  • $100 safety net (with qualifying direct deposit).
  • $10 safety net (without qualifying direct deposit).
  • Fresh Start checking is limited to a $10 safety net.
  • $24 standard fee per transaction if your account balance exceeds the safety net amount.

Frequently Asked Questions About Courtesy Pay:

How long do I have to pay it back?
You must repay all overdraft amounts and bring your available balance positive within 30 calendar days. If the available balance in your checking account remains negative for 45 consecutive calendar days, the account will be closed.

How much can I overdraft?
With Courtesy Pay, there is an overdraft limit of $500 below zero. For Fresh Start checking, the limit is $200.

What are examples of courtesy pay?

Our safety net is like a cushion that protects you from overdraft fees as long as your account balance does not drop below the safety net amount.

Example: Sarah is a TTCU member with Free checking and is opted in to Courtesy Pay. She has a qualifying direct deposit set up, this means she has a $100 safety net.

Her account balance is $50, and today, she makes a last-minute $125 purchase for groceries. Her account now reads –$75. And, she has incurred no fees. Yay for flexibility!

To better understand when a Courtesy Pay fee applies see the example below:

Example: Robert is a TTCU member with Free checking and is opted in to Courtesy Pay. He does not have a qualifying direct deposit set up so his safety net is $10.

With his account balance at $15, he makes a purchase of $50. Because is account balance drops to –$35, he exceeds his safety net and incurs the $24 standard Courtesy Pay fee. His account balance is now at –$59. He has the ability to complete his purchase but could benefit by setting up a direct deposit to increase his safety net threshold. 

Frequently Asked Questions About Overdraft Protection

Enjoy peace of mind with our Overdraft Protection Plan. Link your checking account to a backup account or a line of credit to cover overdrafts - with no transfer fees.

How Does Overdraft Protection Work?

  • Link a Savings, Checking Account or Approved Line of Credit: Funds automatically transfer from your designated account when your checking balance would become overdrawn.
  • No Transfer Fees: Overdraft Protection transfers are free of charge.
  • If Funds Aren’t Available: If Courtesy Pay is enabled, enjoy the benefits listed above. Otherwise, transactions are declined.

What are some examples of Overdraft Protection with Courtesy Pay?

To see how Overdraft Protection can be utilized with Courtesy Pay, see this example:

Example: Matthew is a TTCU member with Free checking and is opted in to Overdraft Protection as well as Courtesy Pay. He has a qualifying direct deposit set up, which means he has a $100 safety net.

His checking account balance is at $0 and his savings account has $60. Today, he makes a last-minute $140 purchase. Overdraft Protection pulls $55 out of his savings. ($5 always stays.) Since Courtesy Pay is enabled, his account balance drops to –$85. Matthew is able to complete his needed purchase as well as avoiding fees!

To see how Overdraft Protection can be used with multiple savings accounts, see this example:

Example: Lyla is a TTCU member with a Classic checking and has elected to have her savings account as her first back up account and her money market as her second back up to cover overdrafts.

Her checking account balance is $25. She has $50 in savings and $500 in her money market. Today, her utility company processes a $100 ACH transaction for a bill. $25 from checking is used first. Overdraft Protection then pulls $45 from her savings ($5 always stays) and the remaining $30 from her money market account. Lyla’s ACH transaction is paid, avoiding any fees and the hassle of a failed bill payment.

What are the benefits of Overdraft Protection?

Overdraft Protection can help prevent a transaction from being declined when your checking account does not have enough available funds. By linking your checking account to a backup savings account, checking account or approved line of credit, available funds can automatically transfer to help cover the transaction.

The main benefits of Overdraft Protection include:

  • Peace of mind: You have a backup funding source if your checking balance runs low.
  • Fewer declined transactions: Important payments, such as bills or everyday purchases, may still be covered.
  • No transfer fees: TTCU does not charge a transfer fee for Overdraft Protection transfers.
  • More control: You can choose which eligible account or line of credit is used as your backup.
  • Added flexibility: It can work alongside other overdraft features, such as Courtesy Pay and Courtesy Pay Plus depending on your account setup and available funds.

Overdraft Protection is helpful for occasional shortfalls, but members should still monitor their balances and make sure backup funds are available.

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*Qualifying Direct Deposit means the checking account has at least one payroll, retirement or social security deposit of at least $250 that is directly deposited into the Qualifying Account within the past sixty days of the overdraft transaction.

Courtesy Pay applies when TTCU Federal Credit Union ("TTCU" or "we") pays transactions that exceed the available balance in your checking account. TTCU does not pay overdrafts for everyday debit card transactions unless you have affirmatively consented to the service (Courtesy Pay Plus). A $24.00 fee may be imposed on each transaction submitted and paid that exceeds your available account balance. TTCU does not charge a fee for a transaction if it creates a negative available balance of less than: $10; or $100, if you have a Qualifying Account and Qualifying Direct Deposit. Any negative balance must be repaid within 30 days. Whether your overdrafts will be paid is discretionary and TTCU reserves the right not to pay. For example, TTCU typically does not pay overdrafts if your account is not in good standing. Please refer to the Membership and Account Agreement and the Courtesy Pay Agreement and Overdraft Transfer Protection Agreement for full details.

Overdraft Protection helps cover transactions by transferring available funds or available credit from a linked account. You "link" your Savings account, draft account, or established line of credit. Transfers occurs in increments of $50, or the available balance if less for savings or draft accounts. For lines of credit, advances occur in increments of $100 and interest will accrue on the entire balance at the rate disclosed in your line of credit agreement. Coverage depends on sufficient funds or available credit in the linked account and is separate from Courtesy Pay and Courtesy Pay Plus.

**Message and data fees may apply from your wireless carrier.