Overdraft Protection Services

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Overdraft Options Overview

Customize the level of overdraft protection for each of your SEFCU checking accounts.

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Transfer from Savings

Use your savings as your first line of defense to cover check and ACH debit transaction overdrafts. For a small fee ($2.50), available funds will be transferred from your savings account to your checking account to pay checks and ACH debit transactions. 

Learn more about SEFCU savings accounts

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Personal Line of Credit

Apply for a Personal Line of Credit and have peace of mind knowing your overdrafts will be covered up to your approved limit if you don’t have enough funds in your checking account to pay for your transaction.

Learn more about SEFCU Personal Line of Credit accounts

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Premium Overdraft

Premium Overdraft is discretionary overdraft coverage provided by SEFCU to prevent items/transactions from being returned or declined in the event of insufficient funds in your checking account. Each checking account  has a dynamic overdraft limit determined by factors such as how long an account has been open as well as the amount and frequency of deposits into the account.

Premium Overdraft provides automatic coverage for checks, ACH debit transactions, and recurring debit card transactions, but you can expand this coverage to one-time debit card transactions and ATM transactions by opting in. Premium overdraft may save you from being charged a fee of $28 for each transaction that overdraws your account.

Learn more about SEFCU Premium Overdraft

What does your Premium Overdraft coverage look like?


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Standard Coverage

ACH Debit Transactions
Recurring Debit Card Transactions


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Expanded Coverage

Standard Coverage PLUS
One-time Debit Card Transactions
ATM Transactions

Get started today


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No Coverage

Transaction will be declined
and merchant fees may be incurred.
Notify SEFCU to decline all coverage.

View Overdraft Protection Service Video

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FAQ Section

What options are available to cover overdrafts at SEFCU?
SEFCU offers three different options as part of our overdraft services.

  • Transfer from savings – ($2.50 fee applies per transfer) covers checks and ACH debit transactions.
  • Personal Line of Credit – Qualified members can take advantage of a Personal Line of Credit that will cover overdrafts up to your approved limit.
  • Premium Overdraft – SEFCU’s Premium Overdraft is a discretionary service automatically available to members who maintain their checking account in good standing and in a responsible manner, providing overdraft coverage to prevent item/transactions from being returned or declined.  Premium Overdraft provides automatic discretionary coverage for checks, ACH debit transactions, and recurring debit card transactions. However, this coverage can be expanded to include one-time debit card and ATM transactions by opting in.  

Will my overdraft election be effective immediately?
Your overdraft election will be processed within one business day, however, it may take up to two business days for any overdrafts to start being paid if you have selected to opt in.

Will Premium Overdraft always cover items/transactions when there aren’t sufficient funds in the checking account to cover the transactions?
No. Each checking account has a dynamic overdraft limit that is a customized amount based on factors such as how long an account has been open, as well as the amount and frequency of deposits into the account. Therefore, your overdraft limit may change based on your daily account activity. SEFCU will always attempt to pay transactions up to your limit.

Why do I have to opt in to one-time debit card and ATM transactions?
In the event of an overdraft, SEFCU will automatically attempt to pay checks, ACH debit transactions, and recurring debits. However, if you would also like SEFCU to try to pay one-time debit card and ATM transactions, SEFCU needs your affirmative consent (opt in) to do so.

What is the fee associated with Premium Overdraft?
While there is no fee to have Premium Overdraft coverage, you may be assessed a $28 fee if a transaction is presented to your checking account when funds are not sufficient.

What if I don’t opt in?
If you don’t opt in, your one-time debit card and ATM transactions will be declined if funds are not sufficient in your checking account. SEFCU will continue to attempt to pay your ACH, check, and recurring debit card transactions as normal.

If my account is brought negative as a result of insufficient funds and any applicable fees, what do I have to do?
It is expected that you make a deposit immediately to cover the negative balance.

Can I change how I want SEFCU to handle my overdrafts?
Yes. You can change your overdraft preferences any time for any of your personal checking accounts.

Can I choose to have no overdraft coverage on my account?
Yes. You are free to make that choice, however we encourage you to consider it. Without overdraft coverage, your transactions will be declined and you may be charged fees by both SEFCU and the original merchant or entity. Overdraft coverage simply means it’s available if you need it. There is no risk in having it, and it is beneficial if you require it.

NOTE: If you decline overdraft coverage, your recurring debit card payments will still be paid and you will still incur a fee for these types of transactions if the payment takes your account negative.

What happens if SEFCU does not pay my transaction?
If you decline all overdraft coverage or we are unable to pay an overdraft for you, the item will be returned to the initiator. When this happens, you may be charged a Returned Item fee by SEFCU and a fee from the payment originator.


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