How to Avoid Overdrawn Account Fees

The fees that members pay most often are usually associated with Non-Sufficient Funds (NSF)/Courtesy Pay fees. These fees apply when you mistakenly spend more money than the amount that is available in your account.

If you write a check or complete a transaction with your FedChoice checking account or debit card, these purchases may not be deducted from your account immediately. But, when making your next transaction, you need to remember that these charges will be coming through which will reduce the amount remaining in your account.

When you check your account online, you will see two columns of information - “Balance” and “Available”. The amount shown in the “Balance” section will usually be higher than the amounts shown in the “Available” section. This difference could be due to check holds, debit card charges that have not yet been deducted from your account and/or required minimum amounts to keep your account in good standing (i.e. $50.00 in your Main Share Savings).

To avoid paying fees:

  1. It’s important to be aware of your “Available” balance so that when you make a purchase, you’ll already know that there is enough money in your account to cover your next transaction.
  2. You may wish to apply for a Personal Line-of-Credit. This loan will be tapped automatically to cover your purchases on an “emergency” basis if you overdraw your account. This arrangement will prevent your account from becoming negative as long as you have enough available credit to cover the charges. This line-of-credit will help to prevent NSF/Courtesy Pay fees from being applied to your account.
  3. You may set up eLerts within eBanking to request an e-mail or text message to let you know when your account balance is getting low. This prior notification may help to prevent you from making a purchase that would have otherwise caused your account balance to drop below zero.