Q: What overdraft protection services does Redwood Credit Union provide?

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

1. Overdraft Pay Advantage:

Sometimes an unexpected life event or an occasional mistake can leave you short of funds so when you write a check or use your debit card, the money isn’t available in your RCU checking account. With RCU’s Overdraft Pay Advantage (OPA) program, we have you covered if you accidentally overdraw your account.

We provide this service to help on occasions when:

  • You made an honest mistake balancing your account and now you’re short of funds.
  • A deposit you expected was delayed.
  • Unforeseen expenses drained your account balance.

Additional benefits OPA provides:

  • Prevents the embarrassment of a declined debit card transaction or a “bounced” check.
  • Allows you to avoid the additional expense of a merchant’s returned-item charge.
  • Gives you greater flexibility managing your money.
  • Added convenience

Options are available to you:

  • All Services: Checks, electronic (ACH) and recurring debit card transactions, and everyday debit card transactions.
  • Checks and Electronic Transactions Only
  • No OPA Coverage

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 $23 non-sufficient funds (NSF) fee per our Cost Recovery Schedule. 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 Automated 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.

Federal Regulations require us to gain your agreement in order to provide Overdraft Pay Advantage services for your everyday debit card transactions. You can agree to this service in a variety of ways:

  • Log in to your RCU online banking at www.redwoodcu.org. Click on the tab Member Services, then Overdraft Pay Advantage.
  • Contact our Member Service Center at (707) 545-4000 or 1 (800) 479-7928.
  • Speak with any of our branch service staff.

2. 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.

3. 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.

Q: What amount is covered by Overdraft Pay Advantage and is it guaranteed?

A: The amount RCU will cover with Overdraft Pay Advantage varies and is based on account standing and history. Typically, RCU will cover up to at least $100 for an Overdraft Pay Advantage transaction, but this is not guaranteed. If your account is not in good standing or you have not made regular deposits into your account, we may not be able to extend Overdraft Pay Advantage services to pay your transaction. RCU will consistently allow your account to go in the negative up to $5.00 without a fee. The maximum amount RCU will cover is $1,500 for personal accounts and $2,000 for business accounts.

Q: Are there any limits to the fees charged for Overdraft Pay Advantage?

A: Yes. RCU recognizes that unexpected events can occur and potentially result in multiple fees before you may become aware of the situation. For this reason, RCU does not charge Members more than 6 non-sufficient fund fees per day on an account. In addition, RCU does not charge daily fees or interest for the negative balance.

Q: What if I don’t want the Overdraft Pay Advantage on my debit card?

A: You can decline Overdraft Pay Advantage services for your everyday debit card transactions at anytime. Please call our Member Service Center at (707) 545-4000 or toll-free at 1 (800) 479-7928, log onto RCU online banking click on the Member Mervices tab and then Overdraft Pay Advantage or speak to a branch representative.

Q: What can I do if I am frequently experiencing overdrafts on my accounts?

A: If you are seeking information or assistance in creating a budget or would like financial counseling, you are eligible for these services free of charge through our partners at BALANCE Financial Fitness. Simply visit BALANCE at www.balancepro.net, call 1 (888) 456-2227, or contact RCU for a referral.

For any additional questions on RCU’s Overdraft Protection Services or any other services, please call or visit an RCU branch.