Make the Call to Stay Safe: Opt in to Overdraft Protection
Thursday, July 1st, 2010New overdraft regulations will take effect July 1 (August 15 for existing checking accounts), and many are confused about how overdraft protection plans work. The following information may help.
Overdraft Protection Plans
There are several levels of overdraft protection to choose from, depending on your needs.
Overdraft Transfer Protection comes automatically with a checking account. When you don’t have funds in your checking account, money is transferred from another account of yours. If these accounts are also short, you may be covered by Courtesy Pay Basic, and, if you opt in for the plan, Courtesy Pay Plus.1
Courtesy Pay Basic may provide overdraft coverage for checks and ACH transactions. There is a $25-per-item-paid fee for this service.
NEW! Courtesy Pay Plus is offered in addition to Courtesy Pay Basic and requires you to opt in. Courtesy Pay Plus extends overdraft protection to include ATM and everyday debit card transactions, for a $25-per-item-paid fee. However, if a debit card transaction is less than $5, the fee will be refunded.2
No Coverage means you choose not to participate in the above options, or you are ineligible. If you have insufficient funds, your overdraft checks and ACH transactions will be returned, unpaid. There will be a $25 fee assessed for any returned check or ACH item. ATM and everyday debit card transactions will be denied at the time of transaction, with no fee assessed.
Overdraft Transfer Protection and Courtesy Pay Basic will not change in August. If you have these services and wish to continue, there is nothing you need to do.
If you do not opt in for Courtesy Pay Plus, however, beginning August 15, ATM and everyday debit transactions will be denied if there are insufficient funds in your checking account. You may choose to opt in at any time, even after August 15, provided you meet eligibility requirements.
If you wish to opt in, please contact Salal by visiting your branch or calling 800-562-5515 or 206-298-9394. Your June statement will have an opt-in coupon which you can fill out and return.
1Payment of items through Courtesy Pay Basic and Courtesy Pay Plus is at our discretion, and both have eligibility requirements.
2Refunding of fees for overdraft debit card transactions of $5 and less will begin August 15, 2010.
Isn’t there another plan to cover overdrafts? A staff person at a branch told me it involved setting up a specific credit back up but I don’t remember the details.
Please advise.
Good morning, Janine,
Yes, there is an Overdraft Transfer Protection service that comes with your checking account, and which you don’t need to opt in for. With this service, if you don’t have sufficient funds in your checking account, the funds are transferred from other Salal accounts to cover the overdraft. There is a fee for this service, which you can find on our fee schedule under “Checking/Overdraft Transfer Fee.”
You can set up your accounts to pull funds in whatever order you like, though not every type of account is eligible for use as a source for overdraft transfers. The best way to get information about our Overdraft Transfer Protection service is to call us at 206-298-9394 or visit your branch.
thanks so much for asking!