Overdraft Protection

*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again.

You can discontinue the Overdraft Privilege in its entirety by contacting us at support@harvardfcu.org, visiting any branch, or mailing us at PO Box 382609, Cambridge, MA 02238-2609.

What Else You Should Know

• Free financial counseling is available through GreenPath Financial Wellness at Harvard FCU.org/GreenPath or (877) 337 -3399.
• A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, Online Banking and Telephone Banking Services to keep track of your balance.
• The $25 Insufficient Funds Paid Fee that is charged if you overdraw your account is the same fee that would be charged if a check or ACH was returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Insufficient Funds Paid Fee or an Insufficient Funds Returned Fee of $25. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee. Please note that the Insufficient Funds Paid Fee for Standard Coverage items and Returned Fee is $5 for members ages 65 and older (excluding recurring debit card transactions).
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Insufficient Funds Paid Fee from funds that you deposit or that are deposited into your account may call us at (617) 495-4460 to inquire on how to discontinue Overdraft Privilege.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Harvard Federal Credit Union (‘We”) will charge an Insufficient Funds Returned Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge an Insufficient Funds Returned Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge an Insufficient Funds Returned Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Insufficient Funds Paid We may use the terms “item” and “transaction” interchangeably.
• The maximum amount of Insufficient Funds Paid Fees that we will charge to your consumer account is $100 per day. We will not charge an Insufficient Funds Paid Fee if the amount of an item on your consumer account is $10 or less.
• We typically post items in the following order: 1) credits, 2) ATM and debit card transactions real time, 3) ACH items in order received, and 4) checks in serial number order. The order in which transactions are posted may impact the total amount of Insufficient Funds Paid Fees or Insufficient Funds Returned Fees assessed. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Insufficient Funds Paid Fees or Insufficient Funds Returned Fees assessed.
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system, but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Insufficient Funds Paid Fees for transactions that we would otherwise be required to pay without assessing an Insufficient Funds Paid Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized, but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus any available Overdraft Protection plus the amount of the Overdraft Privilege limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection, but does NOT include the Overdraft Privilege limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction, but later upon settlement, it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or Harvard Federal Credit Union’s ATMs.
• We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Insufficient Funds Paid Fee may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

• An Overdraft Privilege limit of $750 will be granted to eligible consumer checking accounts opened at least 30 days in good standing.
• Overdraft Privilege may be suspended if you fail to maintain a balance of at least $5 in your primary share savings account, 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 32 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 Privilege limit reinstated.
• Members who are less than 19 years old and Student Accounts are not eligible for Overdraft Privilege.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (617) 495-4460, email us at support@harvardfcu.org, or visit any branch.