Overdraft Protection

You can protect yourself from costly overdraft fees by watching your balance. To prevent overdrafts, track the money you deposit into and withdraw from your account. You can do this on a paper check register or electronically. Remember to track ATM withdrawals, purchases you make with your debit card, bills that get debited electronically from your account, and checks. It is a good idea to keep a cushion of funds in your account to help prevent unintended overdrafts.

Your first line of defense against an overdraft should come from money you already have available in another account. This type of overdraft protection is called an overdraft protection transfer. This is one of the easiest and least expensive ways to keep yourself protected from overdrafts.

Your deposit accounts have two kinds of balances: the actual balance and the available balance. We use your available balance to determine whether there are sufficient funds in your account to pay items. Your available balance may be less than your actual balance if there are check holds or other holds on your account, if previous deposits are returned, or if fees have been charged. You can learn more about the difference between these kinds of balances by referring to your Membership and Account Agreement.

With Overdraft Protection we will transfer money from your linked savings or other designated account to help cover any overdrafts in your checking account. A $1.00 fee per occurrence for overdraft protection activity will apply.

Overdraft Courtesy Pay

Overdraft Courtesy Pay helps protect you against having your items returned in the event of an inadvertent overdraft of your account by giving you a reserve for emergencies or unexpected situations. There is no fee for having this privilege; you are only charged if you overdraw your account. You must opt in for Overdraft Courtesy Pay and qualify for the service before Overdraft Courtesy Pay will be applied.

Here is how Overdraft Courtesy Pay works for you.

Overdraft Courtesy Pay is not a line of credit. However, if you overdraw your account, we have the discretion to pay the overdraft, subject to the limit of your Overdraft Courtesy Pay.  

For example:
Suppose your account balance is $50, and you have $500 of Overdraft Courtesy Pay. If you have a debit item for $100 come in; we would pay the item instead of returning it to the merchant, and charge you the fee for an overdraft transaction. Thus you have avoided any unpaid items or additional merchant fees.  You simply need to bring your balance back current with EIFCU.

When you use your Overdraft Courtesy Pay you must remember to subtract the overdraft fee from your account balance.  In the example above you would have subtracted $130 from your account: $100 (the amount of the check) plus $30 (the amount of the overdraft fee). Any additional items that come in while your account has a negative balance will also be charged the NSF fee of $30 per occurrence.  It is important to record these fees. The next deposit that you make will bring your balance to the amount of the deposit minus the amount you were overdrawn (including any overdraft fees).

ATM receipts, and other ways in which you can get available balance information, will show only your ledger balance without the Overdraft Privilege included.  However, you will be able to withdraw funds from the ATM and have transactions approved for ATM and debit card transactions, even though it will overdraw your account if you have given us prior consent. You must opt in to payment of overdrafts on these items on your consumer account. You will be charged the overdraft fee of $30 associated with these transactions.

How do I “opt in” or “opt out”?

If you want us to authorize and pay overdrafts for which an Overdraft fee will be assessed on ATM and everyday debit card transactions, you may do one of the following:

  • Call us at 765-529-6632, or

  • Contact us by mail: 801 S Memorial Drive, New Castle, IN 47362 or

  • Email us at info@easterninfcu.com

Understanding Uncollected Funds

  • If you deposit to your account and are informed that a HOLD will be placed on some of the funds deposited, those funds are NOT available for you to withdraw until the date indicated on your notice.

  • If an item is presented against held funds and you have Overdraft Courtesy Pay on your account, you will be charged a negative funds fee of $30 to pay the item even though you have a positive ledger balance in your account.

  • For example: You have $100 in your checking account and deposit a $700 check on which we place a $475 hold ($225 is available to you immediately) for 5 days. Although you have a ledger balance of $800, only $325 is “available” for checks or other debits to be paid.

  • If you have a $500 Overdraft Privilege in the example above, you have available to you $825 to pay debit items. However, you will be charged a $30 fee for any debits paid against your account in excess of the $325 shown above as “available”.

Points to Remember about Overdraft Courtesy Pay

  • Every debit occurrence on an overdrawn account will be charged an Overdraft Courtesy Pay fee of $30.

  • You must promptly repay the amount of the overdraft and any overdraft fees.

  • Your Overdraft Courtesy Pay will not be included as part of your available balance at an ATM

  • You must bring your account to a positive balance within 30 days or the Overdraft Courtesy Pay will be removed from your account.

  • You must opt in to payment of overdraft items including ATM and everyday debit card transactions.

Overdraft Privilege Terms and Conditions

You must maintain your account in good standing, which includes at least:

  • Your account is at least 90 days old and has not been negative during this time

  • Continuing to make regular deposits to your account within each thirty (30) day period

  • Bringing your account balance to a positive balance within each thirty (30) day period

  • You are not in default on any loan or other obligation to EIFCU

  • You are at least 21 years of age

  • Must have valid address

  • You are not subject to any legal or administrative order or levy against your account with us


How can I avoid overdraft fees?

The best way to avoid overdrafts and returned payments and any associated fees is to always make sure you have enough funds available in your account to cover all transactions you authorize for payment. You can always contact us by calling 1-765-529-6632 or visiting our branch if you have any questions. In addition, the following tips offer options to assist you: 

  • Check your balances through a variety of options we offer including online, mobile, and telephone access.

  • Activate the option we offer in online banking to receive low balance email or mobile alerts.

  • Make transfers into your account from funds you may have at other institutions.

  • Apply for Overdraft Protection service to transfer funds from a linked Share Savings account to your checking account to cover overdrafts which may cost less and have lower fees.