Overdrafts: What They Are and How to Protect Yourself

At Members Cooperative Credit Union, we understand that navigating your finances isn’t always easy— and we’re here to help. By taking proactive steps, you can reduce the likelihood of overdrafting and gain greater control over your financial well-being.

What is an overdraft?

An overdraft occurs when there aren’t enough funds in your account to cover a purchase or payment. When this happens, your financial institution may charge a non-sufficient funds (NSF) fee. There are practical strategies you can use to minimize the risk and avoid fees.

How to prevent overdraft fees

Here are some simple yet effective ways enhance your financial well-being:

1. Set up online banking alerts
   Stay informed about your account balance by enabling low-balance alerts through our online banking platform. You can customize the threshold, and we’ll notify you via your preferred channel— email or text— if your balance falls below that amount.
2. Link your accounts for overdraft transfers
   Connecting your savings to your checking account provides an automatic safety net. If your checking balance runs low, funds from your linked account will be transferred, helping you avoid NSF fees.¹
3. Use Bill Pay for better control
   With our Bill Pay feature, you decide when your payments are scheduled. This allows you to plan ahead and ensure funds are available before a payment is withdrawn.
4. Meet with a Certified Engagement Specialist
   Our Certified Engagement Specialists can work with you to review your income and expenses, identify patterns, and develop a personalized plan to strengthen your financial well-being.
5. Take advantage of financial education resources
   Our Banzai Learning Center provides interactive tools, articles, and coaching to help you develop better financial habits and make informed decisions.

What if you overdraft? We’re here to help.

If overdrafting has become a recurring issue, you’re not alone—and resources are available. We encourage you to visit a branch or schedule a virtual appointment with a Certified Engagement Specialist to take control of your financial future. At Members Cooperative Credit Union, we’re committed to providing guidance, solutions, and support— every step of the way.