Overdraft Coverage Options Tips, Info & FAQs
Overdraft coverage helps you avoid the embarrassment of declined transactions and the expense of associated merchant return fees.
Life happens! United Texas Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
Service Cost Overdraft Protection Link to another Deposit Account you have at United Texas Credit Union No fee per transfer Overdraft Protection Line of Credit 1,2 Subject to interest Overdraft Protection Link to Mastercard 1,2 Subject to interest Overdraft Privilege $25 Overdraft Fee per item
1Call us at (210) 561-4500 or (800) 531-8456, or come by a branch to sign up or apply for these services; 2Subject to credit approval.
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, Mastercard or line of credit you may have at United Texas Credit Union for a fee or finance charge. Please note that Mastercard credit cards and overdraft lines of credit are subject to credit approval.
Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review “What Else You Should Know” in the More Information section for other important information.
Transactions Covered with Overdraft Privilege Standard Coverage
(No action required)
(Your consent required)*
Checks X X ACH - Automatic Debits X X Recurring Debit Card Transactions X X Online Bill Pay Items X X Transfer Requests (Call Center) X X Teller Window Transactions X X ATM Transactions X* Everyday Debit Card Transactions X*
If you would like to select Extended Coverage for future transactions:
- Call us at (210) 561-4500 or (800) 531-8456
- Visit any branch
- Complete our consent form and mail it to us at 5500 UTSA Boulevard, San Antonio, TX 78249
- E-mail us using secure e-mail in Online Banking
*If you choose Extended Coverage, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
You can discontinue Overdraft Privilege in its entirety by contacting us at (210) 561-4500 or (800) 531-8456 or sending us a secure e-mail via Online Banking.
Debt Reduction Strategies
The following tips are designed to help you reduce your debt quickly and economically.
1. Create a Budget and Stick With It. Your budget should include all of your current expenses. Request a copy of the Personal Budget Planner for more information on creating a budget.
2. Don’t Borrow Additional Money to Pay off Debts or Bills.
3. Cut Expenses. Get this number by analyzing your budget and determining where reductions can be made (e.g., eating out, buying snacks and lunch at work, going to the movies, etc.). Once you have determined how much you plan to cut, use this “found” money to pay down the balances on your debts.
4. Optimize Your Monthly Payment. Pay the maximum amount towards your highest interest rate debts. Pay the minimum amount on all other debts.
5. Ask for Reduced Interest Rates. Some creditors, especially credit card companies, will reduce your interest rates if you just call and ask. If you receive offers for other credits cards with lower interest rates in the mail, use those offers as leverage when you are re-negotiating your rates with your current creditors.
6. Set Goals and Priorities. Determine what’s important. When you prepare to buy something ask yourself if this purchase is in line with the priorities you have set and will it help you reach your goal or delay it.
7. Check out this free Debt Reduction Calculator that allows you to determine the amounts you should be paying towards each of your debts and calculates the money you will save by paying your debts in the recommended order. Additionally, the program tells you when each of your debts will be paid off.
From Our Blog
I have more than one checking account. Can I have Overdraft Privilege on all of my checking accounts?
New Ultimate Checking accounts opened after June 1, 2019, automatically have $600 of standard Overdraft Privilege.
New business checking accounts opened after June 1, 2019 automatically have $1,000 of extended Overdraft Privilege for up to two checking accounts.
Does this coverage only apply to new checking accounts?
For now, it only automatically applies to new qualifying checking accounts opened after June 1, 2019.
Beginning July 1, 2019, this coverage will automatically be available to all members with qualifying checking accounts.
Will this coverage be available for all checking account types?
Unfortunately, Overdraft Privilege will not be available for Do Over Checking, IOLTA, Estate, and Trust accounts.
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Overdraft Coverage Options Why United Texas
- Less expensive alternative to payday lending
- Consumer checking accounts have $600 of coverage and business checking accounts have $1,000 for up to two accounts
- You have 32 days to bring your account back to a positive status
- Avoid fees from merchants for returned items
- Does not require credit approval
We are senior citizens and can say and back up the old phrase, "been there done that". We are loyal "family" bank members since 1978. Bank names may have changed but the core values of the staff and member stands, strong and empathetic. During the recession in the 90's, we lost our nest egg. And today, we do live a full circle of day by day surviving. Thanks to the bank's understanding and treating us as they wish to be treated, with courtesy, dignity and respect, it gives a personal understanding it can happen to the best of us. The privilege of overdraft, helps tremendously and though it is a fee, it avoids the embarrassment, shame of knowing our status. Thank you for your consistently behaving in ways that are ethical, earning the respect of each other and most importantly knowing your reward is "serving us".
Diana - thanks so much for your feedback! We sincerely appreciate your loyalty to United Texas CU and we are honored to serve. -Karla
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Overdraft Coverage Options How it Works
Giving consent for Extended Overdraft Privilege is easy.
Call us at (210) 561-4500 or (800) 531-8456.
Visit any of our branches.
Complete and sign our Consent Form to elect overdraft coverage for ATM and everyday debit card transactions and
mail it to: 5500 UTSA Boulevard, San Antonio, TX 78249.
Send us a secure e-mail in Online Banking letting us know that you would like Extended Overdraft Privilege.
Enjoy the peace of mind that comes with having your ATM and everyday debit card transactions covered by Overdraft Privilege!
Related Products & Services
What Else You Should Know
- A link to another account, Mastercard or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and Audio Response System (ARS) to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $25 Overdraft Fee that is charged if you overdraw your account is a lower fee than the fee that is charged if a check or other item is returned as unpaid. We do not charge a fee for debit card overdrafts of $5 or less. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $28. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
- If a check or item is returned because the available balance in your account is not sufficient to cover the check or item and the check or item is presented for payment again, United Texas Credit Union will charge a return item fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the check or item, the available balance in your account is sufficient to cover the check or item United Texas Credit Union may pay the check or item, and, if payment causes an overdraft, charge an overdraft fee.
- Our general policy is to post items throughout the day and to post credits before debits. Paper checks are posted as presented, while ATM, ACH and debit card transactions are posted in the order in which the items are received; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed.
- Although under payment system rules, United Texas Credit Union may be obligated to pay some unauthorized debit card transactions, United Texas Credit Union will not authorize debit card or ATM transactions unless your account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your account until you otherwise withdraw it.
- United Texas Credit Union authorizes and pays transactions using the available balance in your account. United Texas Credit Union may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
- Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking or United Texas Credit Union’s ATMs.
- United Texas Credit Union will place a three-day hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
- Except as described herein, United Texas Credit Union will not pay items if the available balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
- United Texas Credit Union may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Overdraft Privilege limit (as described herein). Debit cards on your account remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact us.
- United Texas Credit Union may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
- United Texas Credit Union may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
- If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
- New consumer checking accounts will receive an Overdraft Privilege limit of $600 at account opening.
- New business checking accounts will receive an Overdraft Privilege limit of $1,000 at account opening.
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without notice.
- Overdraft Privilege may be suspended if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the Overdraft Privilege limit
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (210) 561-4500 or (800) 531-8456 or visit a branch.