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Overdraft Coverage Explained
Overdraft Coverage and Overdraft Privilege (ODP) Fees Update
Overdraft programs like ours provide members a practical alternative to otherwise expensive check cashing services and payday lenders. They're an affordable way to pay important and necessary day-to-day purchases when you don't have enough funds in your account to cover them.
As a not-for-profit credit union, our members are our highest priority – not profits. While it is true that overdraft fees add to our earnings, our profits don't go to shareholders. Any money that remains from earnings after expenses are paid is given back to our members and the community in the form of higher dividends on share accounts, lower interest rates on loans, financial education, and enhanced products and services.
If you do elect to add Overdraft Privilege to your account, we keep our fees affordable and below the national average.2 We also provide Overdraft Transfer without transfer fees so you have another option when you need extra financial flexibility.
Credit Union West is proud to serve as a trusted financial partner and we strive to provide services that promote financial wellness for all. Explore our overdraft coverage options and the benefits they provide.
- Read a message from Karen Roch, our President and CEO
- Get answers to your questions in the FAQ
- View the Overdraft options available
OVERDRAFT PRIVILEGE
We provide the upfront funds to cover the overdraft transaction.
Cost: ODP fee per occurrence -
$25 for consumers
$35 for business
|
Standard Coverage Includes
|
 Checks |
| ACH Transactions |
| Recurring Debits |
|
Extended Coverage Also Includes
|
|
ATM Withdrawals* |
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Everyday Debit Purchases* |
* Opt in/out through online banking, form fill, in-branch, or by phone
OVERDRAFT Transfer
Automatically transfers funds to your checking account from your savings account to protect against overdrafts.
Cost: No Charge
| Relies on share fund availability |
| Checks |
| ACH Transactions |
| Recurring Debits |
|
|
|
ATM Withdrawals |
|
Everyday Debit Purchases |
* Opt in/out in-branch or by phone
CREDIT RESERVE
Automatically transfers funds to your checking account from your line of credit to protect against overdrafts.
Cost: Interest Charges
| Subject to credit approval |
| Checks |
| ACH Transactions |
| Recurring Debits |
|
|
|
ATM Withdrawals |
|
Everyday Debit Purchases |
* Apply by submitting a loan application online
View the Overdraft Coverage Disclosure for more details.
A message from Karen Roch,
President & CEO
UPDATED June 6, 2024: As part of our ongoing commitment to serving our members with transparency and fairness, I want to bring your attention to some important information regarding our Non-Sufficient Funds (NSF) and Overdraft Privilege (ODP) fees.
In response to the evolving regulatory landscape and with the sincere aim of ensuring that our fee structures remain aligned with the best interest of our valued members, Credit Union West undertook a series of actions back in 2022. These initiatives were designed to alleviate financial burdens and promote financial wellness for our members and within our communities.
Some significant changes included the proactive decision to eliminate the $35 NSF fees on returned checks and substantially reduce ODP fees from $35 to $25. The credit union also eliminated the $5 overdraft transfer fee for instances when an automatic transfer had to take place from a savings or line of credit to cover any overdrafts. Additionally, Early Pay was introduced to empower members with greater control over their finances. Through Early Pay, eligible members can access their paychecks up to two days early, helping to mitigate the risks of overdrafts and providing greater flexibility in managing expenses. By implementing these changes, we aimed to create a more equitable banking experience for all.
While there is continued scrutiny on fees, including NSF and ODP, these types of programs provide a safety net for members, allowing transactions to be approved even if they would otherwise exceed the available balance and prevent declined transactions, returned checks, and potential embarrassment or inconvenience. Overdraft coverage can help members avoid negative consequences such as fees from merchants or damage to credit scores. Programs offered by credit unions help to prevent members from having to seek out alternative solutions that may be predatory in nature, such as payday loans.
It's important to note that Credit Union West offers overdraft coverage options as a discretionary service, giving individuals the choice to participate fully, ensuring that they have complete transparency and control over their overdraft coverage preferences.
As we continue to navigate the regulatory landscape and strive to uphold the principles of transparency and fairness in all our practices, we remain deeply committed to serving the needs of our members and fostering a community of financial empowerment.
Thank you for your valued membership!
All Credit Union West members are automatically enrolled in the standard coverage of Overdraft Privilege. Businesses are also enrolled in extended coverage.
Having Overdraft Privilege means the credit union will temporarily cover a purchase or withdrawal on your behalf when you do not have enough money in your Credit Union West account. It's like a short-term loan that is paid back when you make your next deposit. An ODP fee is charged for this service of $25 for consumer accounts and $35 for business accounts.
Members may avoid fees associated with overdraft in two ways:
- Members may opt-in for Overdraft Transfer coverage to automatically transfer funds from savings to checking when an overdraft occurs. This option relies on funds availability in your savings account. There is no fee for this service.
- If you do not want Overdraft Privilege coverage on your consumer account, you can opt-out at any time by contacting us. When opted-out, transactions that would overdraft your account will go unpaid and do not receive a fee. Business accounts may not unenroll in Overdraft Privilege Standard or Extended coverage.
While Standard Overdraft Privilege is automatically included for new accounts, covering checks, ACH transactions, and recurring debits, we also offer the option to opt-in for extended coverage, which includes ATM withdrawals and everyday debit card purchases. In addition, members are given the choice to opt-out of these coverages during the new account opening process, ensuring flexibility and tailored solutions for our valued members.
If you did not opt-out of overdraft coverage when you opened your account and you no longer wish to have the coverage, that's okay! You can opt-out at any time by speaking with a member of our team on the phone at 602.631.3200 or 800.621.0287 (outside Maricopa County) or at a branch.
When opted-out, transactions that would overdraft your account will go unpaid and do not receive a fee.
Business accounts may not unenroll in Overdraft Privilege Standard or Extended coverage.
While overdraft coverage options are convenient for many, it can be vital to others. Members who lack savings or do not have access to traditional, lower-cost credit products may find overdraft programs like ours are one of the few affordable options available to them.
Our overdraft options provide financial flexibility to help our members cover unexpected expenses and avoid paying late on important transactions. Without the option for overdraft, members may have no other option than to pay bills late. This can take a heavy toll over time, resulting in compounded late fees, utility shut-off, lower credit scores, and negative health impacts of forgoing food and grocery purchases in an effort to reallocate funds.1
“Junk fees” are hidden charges attached to a product or service such as resort fees or event ticket fees. These unexpected fees obscure the true price of the item you purchase, often only appearing at the checkout, or worse, on your receipt after you make the purchase.
In essence, junk fees are surprise, excessive, or unnecessary charges imposed for fake or worthless services.
You may have seen claims in the news that NSF fees can turn into "junk fees" depending on how your bank or credit union chooses to charge them. At Credit Union West, we eliminated our $35 NSF fees on returned checks and substantially reduced our ODP fees below the national average2 to ensure the services we offer are fair and promote financial wellness for our members.
How are ODP fees different?
- No surprises - When you opened your Credit Union West account, you were enrolled in the standard coverage of Overdraft Privilege and provided the Overdraft Coverage Disclosure detailing how the program works. Remember, non-business accounts are not required to have this service and may opt-out of Overdraft Privilege in its entirety by contacting us at 602.631.3200 or 800.621.0287 (outside Maricopa County).
- Reduced fees - In 2022, we substantially reduced our ODP fee from $35 to $25 for consumer accounts, which is considerably lower than the national average!2
- Offers a vital service - Our overdraft coverage provides financial flexibility to help our members, specifically those who lack savings or do not have access to traditional, lower-cost credit products, cover unexpected expenses and avoid paying late on important transactions.
Yes. You may use multiple overdraft coverage options. With multiple coverage types, select your primary coverage option by speaking with a member of our team on the phone at 602.631.3200 or 800.621.0287 (outside Maricopa County) or in-branch.
1 Source: CBA Releases National Empirical Survey Results Showing Consumer Value and Need for Bank Overdraft Products - https://consumerbankers.com/press-release/cba-releases-national-empirical-survey-results-showing-consumer-value-and-need-for-bank-overdraft-products/
2 Source: NSF fees: A guide to nonsufficient funds fees - https://www.cnn.com/cnn-underscored/money/nsf-fees#:~:text=Ultimately%2C%20the%20transaction%20isn't,times%20for%20the%20same%20transaction
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