Overdraft Services
Life happens. Unexpected expenses occur from time to time. It happens to all of us. With Overdraft Services from TwinStar, you can protect your checking account in the event of an inadvertent overdraft.
Overdraft Services adds a measure of protection to your checking account that can cover insufficient funds (up to your approved limit) for a fee per every covered overdraft transaction. So instead of having to return items due to insufficient funds, TwinStar may pay your overdraft, sparing you potential inconvenience and additional costs.
Take advantage of our Overdraft Service coverage: Standard Overdraft and Expanded Overdraft.
TwinStar Members are automatically enrolled in Standard Overdraft. Members will receive Standard Overdraft on one checking account per Social Security Number (SSN). Members who want Expanded Overdraft must opt-in to the coverage.
The chart below highlights the types of transactions covered by each coverage.
| Transactions Covered with Overdraft | Standard Coverage (no action required) | Expanded Coverage (your consent required on consumer accounts)* |
|---|---|---|
| Checks | X | X |
| ACH - automatic debits | X | X |
| Recurring Debit Card Payments | X | X |
| Online Bill Pay Items | X | X |
| Internet Banking Transfers | X | X |
| Teller Window Transactions | X | X |
| Everyday Debit Card Transactions |
| X* |
*Expanded Overdraft coverage requires members to opt-in.
Expanded Coverage Consent Form
Fees & Costs**
| Service | Cost |
|---|---|
| Overdraft Service Fee | $28 per item |
| Overdraft Transfer Fee | $3 per transfer from one account; $6 per transfer if pulled from more than one account |
| Overdraft Transfer Amount | $100 increments |
| Non-Sufficient Funds Fee (NSF) | $28 per item |
**Maximum of 25 fees per month (combined Overdraft Services fees and non-sufficient funds fees). Fees will not be applied to transactions of $5 or less.
Frequently Asked Questions
Q: What is Overdraft?
A: Overdraft is a discretionary service available to members that helps members pay their bills when funds are not available to cover their transaction. Overdraft provides a limit for which the credit union can cover transactions on a member’s behalf, enabling transactions to process through a member’s account even when there are insufficient funds. This helps to prevent late and missed payments, as well as disrupted services. It is important to understand that overdraft is not a loan; it is designed to help cover you in emergency situations.
Q: What is Standard Overdraft?
A: Standard Overdraft covers ACH, checks, and reoccurring debit card transactions. An easy way to understand this is that Standard Overdraft may cover your bills for you when funds are not available up to your limit. For each transaction that overdraft covers on your behalf, there is a one-time fee of $28.
Q: What is Expanded Overdraft?
A: Expanded Overdraft includes everything that the Standard Overdraft does but adds an additional level of protection by helping members cover their everyday debit card transactions. An example of an everyday debit card transaction would be going to the grocery store and purchasing groceries. Expanded Overdraft provides you with the opportunity to walk out the door with your groceries when you may not have funds available. Members who want Expanded Overdraft must opt-in to this coverage. You can opt-out of Expanded Overdraft at any time.
Q: What is Overdraft Protection?
A: Overdraft protection is used to help prevent overdraft fees. This is done by setting up an account that you can draw from instead of relying on your overdraft limit to cover your transactions. You can link savings accounts such as a money market, secondary share, or you can link a personal line of credit. If you would like to set up overdraft protection, please visit or call a branch.
Q: How do I Avoid Fees?
A: The best way to avoid overdraft fees is to always be aware of how much money you have in your account and how your payments will be processed. We process payments as we receive them whenever possible. Not all merchants send us transactions the same way though. Smaller merchants may batch their transactions. As a result, we may not receive those transactions for a few days. That’s why it’s important to know how much you have spent. Being in control of when funds leave your account, instead of giving permission for a merchant to pull funds, can go a long way in preventing fees. By doing so, you send money when you have it, instead of allowing a merchant to take funds. We offer many tools to help you manage your funds including:
- Free bill pay
- Low balance text message alerts
- 24/7 digital banking access
Expanded Coverage Consent Form
Overdraft should be repaid as soon as possible to avoid fees. Overdraft is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice and we reserve the right to pay.
Overdraft may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 31 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft limit reinstated. Overdraft limits will be removed after 41 days with a negative balance or past due loan.
Last updated on March 03, 2025.