Overdraft Line of Credit

The first level of overdraft protection is to link your membership savings, money market account, or other emergency savings account here at RadiFi to your RadiFi checking account.

If you overdraw your checking account, the credit union will transfer funds in increments of $100 from your savings or money market account into your checking account for a nominal fee of $3 per transfer. If less than $100 is available, then the available amount will be transferred. If a scheduled RadiFi bill pay causes an overdraft, then the transfer will be for the amount needed to cover the payment plus the $3 transfer fee.

We recommend that members set up balance alerts through Digital Banking to get immediate updates when balances are running low.

Add a second level of protection by applying for an overdraft line of credit. Your line of credit can be approved for either $500 or $1,000. If your checking account becomes overdrawn and no funds are available in a linked savings account, a transfer would be made automatically in increments of $100 (no transfer fee applies) from the Overdraft Line of Credit. The monthly payment on the overdraft line of credit is $65 per month due on the last day of the month. Since the loan amount is small and the repayment is accelerated, the finance charges are very minimal. For example on a loan balance of $500, the finance charges are less than $8 per month even at 18% APR.

There is no annual fee for the Overdraft Line of Credit. If you make an advance, you can repay it immediately; however, the minimum $65 payment is not due until the end of the month following the month in which the advance was made. We recommend members set up the minimum payment on automatic transfer from their checking account.

Courtesy Pay is a discretionary overdraft privilege service offered to qualified members with checking accounts in good standing for a minimum of 90 days, who meet our deposit activity requirements.

For qualified checking holders, RadiFi will establish a courtesy pay limit of $500. This is the amount we are willing to allow your account balance to go negative in order to pay your check, ACH, Debit, or ATM transactions.

If we pay the item, your account balance will be negative, and you will incur a $34.00 overdraft fee for each item. One mistake isn’t too bad, but this becomes very costly if the occurrence of overdrafts becomes frequent. If you do overdraw your account, deposit money into the account within 15 days to cover the overdraft amount plus any fees.

Courtesy Pay may not always be available, and should, therefore, be the last consideration after using linked savings or an overdraft line of credit. Courtesy pay is the most costly option of the three.

To keep Courtesy Pay, you must maintain all of your credit union accounts in good standing and any negative courtesy pay balances must be repaid within 15 days. If the overdrawn balance is not repaid in 25 days, Courtesy Pay will be turned off.

Courtesy Pay Option
If you’ve been approved for Courtesy Pay, checks and ACH transactions are covered under our standard service and require no action on your part. (However, you always have the option of Opting-out of any type of Courtesy Pay.) Please see the Courtesy Pay Disclosure for important information about keeping your account in good standing.

For Courtesy Pay coverage of ATM transactions, or non-recurring debit card transactions often called “everyday transactions”, you will need to “Opt-in”. If you do not Opt-in, only your checks and ACH requests will be covered by Courtesy Pay.

Pros and Cons of Opting-in for ATM/Debit Card Coverage
If you are concerned about having an ATM or debit card transaction declined, or would like Courtesy Pay overdraft coverage in case of an emergency, you may wish to Opt-in. However, please read the following to ensure you understand the limitations of the service.

If you choose to Opt-in, you will NOT receive notification each time you use your ATM/Debit card that the transaction is causing an overdraft covered by Courtesy Pay. So, for example, let’s assume you need $20. If your checking balance is $12 and Courtesy Pay is the only level of protection available, you would be allowed to withdraw $20 at the ATM. You would learn later that the transaction caused an overdraft and that the fee was $32.50. To avoid accessing Courtesy Pay unknowingly at an ATM, you should check your ATM balance before each withdrawal, and call or check your balance online before making a debit card purchase. Receiving automatic low balance alert emails is also a helpful way to avoid paying overdraft fees unknowingly.

Fees
There is no standard monthly or annual charge to have Courtesy Pay for Checks/ACH or to add Debit/ATM Coverage (Opt-in). A fee is only incurred when an overdraft is paid causing the account balance to go negative. The fee for a Courtesy Pay Overdraft is $34.00, which is the same as our NSF fee. We will not charge a fee if the amount of the overdraft is less than $5, and we will not charge more than 3 Courtesy Pay fees per account per day. You can set up your Linked Savings Account, apply for an Overdraft Line of Credit, or inquire about Courtesy Pay by phone, online, or by visiting a RadiFi Branch.