Your Guide to Overdraft Protection

Life happens—and sometimes, so do overdrafts. Whether you're covering a surprise expense or simply miscalculated your balance, overdraft protection can help you avoid declined transactions and costly fees. As a General Electric Credit Union (GECU) member, you have access to several options that act as a financial safety net.

What is an overdraft fee?

An overdraft fee is charged when you spend more money than you have available in your checking account and your bank or credit union covers the transaction. These fees can add up quickly, especially if multiple transactions occur while your account is overdrawn.

What is overdraft protection? 

Overdraft protection helps prevent overdraft fees by covering transactions that exceed your account balance. GECU offers several overdraft solutions:

Overdraft protection transfers¹

This option automatically moves funds from a linked GECU savings or money market account to your checking account when your balance is too low. It’s a seamless, fee-free solution that helps you avoid overdraft charges altogether. Available to Simply Free, Choice, and Amplified High-Yield Checking accountholders, this transfer occurs instantly when sufficient funds are available in your linked account.

Overdraft line of credit

Instead of pulling from existing funds, this solution draws from a pre-approved line of credit. It’s ideal for those who want a backup without tying up savings. You’ll repay the borrowed amount with interest, but if you initiate the transfer in advance through Online Banking or the mobile app,2 there’s no transfer fee. Otherwise, a $2 fee applies per transfer. This option requires credit approval and provides flexible access to funds when you need them most.

Courtesy Overdraft

Courtesy Overdraft acts as a safety net when other solutions are unavailable or insufficient. It’s not a loan, but it allows GECU to cover transactions up to a disclosed limit for a fee per item. This includes checks, ACH payments, and Bill Pay transactions. You can also opt into extended coverage to include everyday debit card and ATM transactions,³ giving you broader protection when your account balance dips unexpectedly.

Layering overdraft protection for maximum protection 

GECU’s overdraft solutions aren’t one-size-fits-all—and that’s a good thing. You can layer these options to create a customized safety net that fits your financial habits. For example:

• Start with overdraft protection transfers for fee-free coverage from your savings.
• Add an overdraft line of credit as a secondary option when savings are low or unavailable.
• Courtesy Overdraft acts as a final layer of protection to ensure transactions are covered even when other sources are exhausted. See the “How much can I overdraft my checking account” section to learn more about standard and extended coverage. 

By combining these services (in any order you’d prefer), you gain greater peace of mind and reduce the risk of declined transactions or returned payments. It’s a smart, proactive way to manage your money—especially when life gets busy. You can explore all the details on GECU’s overdraft solutions page.

Can you overdraft a credit card?

Technically, no. Credit cards don’t allow overdrafts in the same way checking accounts do. If you exceed your credit limit, your transaction may be declined or you may incur an over-limit fee, depending on your card issuer’s policies. 

How much can I overdraft my checking account?

The amount you can overdraft depends on the type of overdraft coverage you have and your available balances or limits. At GECU, we offer three overdraft solutions that can be layered for added protection:

1. Overdraft protection transfers

• Automatically transfers funds from a linked GECU savings or money market account to your checking account.
• Limit: Up to the available balance in the linked account.
• Fee: $0 if initiated in Online Banking or the mobile app; otherwise, $2 per transfer.

2. Overdraft line of credit (ODLOC)

Upon approval, this line of credit automatically transfers funds to your checking account when needed.
Limit: Up to your approved credit limit.
Fee: Interest applies; $0 if initiated online or via the app.

3. Courtesy Overdraft

A discretionary service that may cover transactions even if your account lacks sufficient funds.

• Standard Coverage: Automatically included; covers checks, ACH items, and recurring debit card transactions.
• Extended Coverage: Requires opt-in; includes ATM and everyday debit card transactions.
• Limit: Up to a disclosed limit, which varies by account.
• Fee: $32 per item, with a maximum of five fees per day.

Important notes:

• Your available balance may not reflect pending transactions or holds, which can affect whether a transaction is covered.
• Even if a transaction is authorized, it may still result in an overdraft fee if your balance is insufficient when it settles.

Overdrafts can happen anytime. Having the right protection in place ensures your transactions go through smoothly, whether you're buying groceries or paying bills. To explore your options, visit GECU’s overdraft solutions page or connect with a representative through Chat on our website and in Online Banking or the mobile app. 

Alternatively, you can stop by your nearest branch location or schedule a Virtual Branch visit to meet from home, work, or wherever is most convenient for you! Just have a quick question about overdraft solutions? Message Violet, our Virtual Assistant, on our website or within Online Banking or the mobile app!