Redwood Credit Union  offers three types of services to protect you from experiencing an overdraft when you have insufficient funds to pay a requested transaction:

  • Overdraft Account Transfer: With overdraft account transfer, funds from your RCU savings and/or money market account will be transferred to your checking account in $100 increments to cover a transaction you do not have sufficient funds to pay. This is a free service, limited to 6 transfers per month by Federal Regulation D.
  • Overdraft Line of Credit: You may establish an overdraft line of credit, so that if you have insufficient funds to pay a transaction, funds from your Line of Credit will be advanced in $100 increments to your checking account to cover the transaction. Because this is a loan, daily interest is charged on the outstanding balance. If there is no balance, no interest or fees are assessed. 
  • Overdraft Pay Advantage: RCU's Overdraft Pay Advantage service acts as a safety net on those occasions when you have insufficient funds to pay for a transaction and do not have any other protection services. Instead of an item or transaction being returned or being declined, RCU may pay the item or transaction on your behalf. Because an overdraft occurred, you will incur a non-sufficient funds (NSF) fee. This fee is the same amount as if we returned your check unpaid. (Debit card transactions that are declined are not assessed a fee.) This service can be used to pay your checks, automatic bill payments (such as Automatic Clearing House or recurring debit card transactions), and your everyday debit card transactions. After a transaction is paid, you’ll be asked to make a deposit to cover the negative balance in your account immediately, and no later than within 20 days. You have options with Overdraft Pay Advantage and have the ability to change them at anytime:
    • All Services: Checks, electronic (ACH) and recurring debit card transactions, and everyday debit card transactions.
    • Checks and Electronic Transactions Only
    • No OPA Coverage

We will use the available balance and not your actual balance to determine if you have sufficient funds to cover your transactions.

Redwood Credit Union (RCU) offers Members valuable products and services with no or low fees. For select products and services, some fees are assessed as a cost recovery. See our Cost Recovery Schedules for Personal Accounts and Business Accounts for details.