How To Avoid Overdraft Fees at a Credit Union

Credit unions are mostly known for offering favorable rates and low fees when compared to banks. However, like any financial institution, credit unions may have overdraft fees if you spend more money than you have in your bank account.

How to avoid overdraft fees at Clark County Credit Union in Las Vegas, Nevada

In 2022, the Consumer Financial Protection Bureau (CFPB) reported that U.S. consumers paid over $7.7 billion in overdraft or nonsufficient funds (NSF). That’s a large amount of money being paid for fees that could’ve been prevented by consumers.

What is an overdraft fee?

An overdraft fee is charged by a financial institution when a customer's account has insufficient funds to cover a transaction, but the financial institutions pay for it anyway. This is like getting a loan to cover the transaction. This can happen if you write a check, use your debit card, or make an automatic bill payment when you don't have enough money in your account to pay what is owed.

Most financial institutions charge $35 per transaction depending on the bank or credit union you use. If you’re not careful, these fees can drain your account quickly.

CCCU has some simple tips to avoid overdraft fees:

  1. Monitor your account balance – make sure to get in the habit of keeping track of your account balance by checking it online or through the mobile app. This will help you avoid spending more than you have in your account. Some of members check their accounts daily to avoid any issues.
  2. Setup notification alerts – almost all financial institutions offer notification alerts that you can set up to notify you when your balance reaches a certain threshold depending on your preference. This way you can transfer funds or limit spending when you need to.
  3. Link another account – when you link another account like a savings account or a line of credit to your checking account and accidentally overdraft your account, the credit union will automatically transfer the funds from your linked account to cover it.

By following these tips, you can avoid paying overdraft fees at your financial institution and save your money for more important things, like your financial goals and dreams.

CCCU’s Overdraft Line of Credit starts at $500 and helps our members get protection against incurring fees if their balance drops below zero. We also offer competitive rates based on your credit history. Call us at 702-228-2228, option 1 to apply or visit our Personal Loans page for more information.