Overdrafting at Navy Federal Credit Union
Overdrafting occurs when you spend more money than you have in your account. This can happen when you write a check, make a debit card purchase, or initiate an electronic transfer that exceeds your available balance. While overdrafts can be helpful in emergencies, they come with fees that can quickly add up.
Overdraft Protection Options at Navy Federal
Navy Federal offers various overdraft protection options to help members avoid these fees. Here are some of the most popular choices:
- Overdraft Protection Transfer: This option automatically transfers funds from another account you have at Navy Federal to cover the overdraft.
- Overdraft Protection Line of Credit: You can link a line of credit to your checking account. If your balance goes negative, funds from the line of credit will be used to cover the overdraft.
- Overdraft Protection Transfer from Savings: You can opt to have Navy Federal transfer funds from your savings account to cover an overdraft.
- No Overdraft Protection: You can choose not to have any overdraft protection. In this case, your transaction will be declined if you don't have enough funds in your account.
Understanding Overdraft Fees at Navy Federal
Navy Federal charges a $35 fee per overdraft transaction. However, they limit the number of overdraft fees you will be charged per day. This means that, even if you have multiple transactions that overdraft, you will only be charged a maximum of $35 for that day.
Tips for Avoiding Overdrafts
- Track Your Spending: Regularly monitor your account balance to avoid overdrafting.
- Set Up Account Alerts: Use your online banking or mobile app to set up alerts for low balances or pending overdraft transactions.
- Review Transactions: Check your account statements regularly for any unauthorized or unexpected charges.
- Plan Ahead: If you know you will have a large expense coming up, make sure you have enough funds in your account.
Conclusion
While overdraft protection can be helpful in a pinch, it's best to avoid overdrafting altogether. By understanding how overdrafts work and taking steps to prevent them, you can save yourself unnecessary fees. Remember, it's always better to be proactive and manage your finances wisely.