Overdraft Pay Advantage - Next Day Grace

We understand that sometimes an unexpected life event or occasional mistake can leave your checking account short of funds. Our optional Overdraft Pay Advantage (OPA) program can cover you if you unexpectedly overdraw your account¹. When this happens RCU charges a $19 fee, as published in our Cost Recovery Schedule. You now have an opportunity to have this fee automatically reversed with our new Next Day Grace feature.

How does Next Day Grace work?

If you are opted in to OPA and you overdraw your account, we will send an alert to the email address listed on your account. If you make a deposit and have enough available funds at 11:00 a.m. Pacific Time the next calendar day to cover the overdraft amount plus any applicable fees, we will refund the OPA fee you were charged the prior day.² We encourage you to make deposits through our mobile app or ATMs (available 24 hours), at any RCU branch, or through our shared branching network.

FAQs

Do I need to enroll in “Next Day Grace”?
You do not need to enroll in Next Day Grace. To ensure you receive the alerts, please make sure your current email address is added your RCU account profile.
What types of deposits qualify?
Any deposits made to your account that are available for withdrawal at 11:00 a.m.
What happens if the deposit doesn’t cover the negative balance?
Unfortunately, the fees will not be reversed. Please contact us if you need assistance or are having financial challenges.

Example:

Your current balance is $0.00.

You have 2 overdrafts paid by Overdraft Pay Advantage for $100 and $200 and were charged a $19 fee for each one. Your balance is now negative -$336.

If you deposit $336 or more by 11 a.m. and there are no holds, other fees or charges to our account, your fees will be reversed.

Avoiding overdrafts

We’re committed to your financial success, and we want to help you to avoid overdrafts. While services like Overdraft Pay Advantage can reduce the cost of an overdraft in the event of a mistake or unexpected expense, careful spending and budgeting are still the best way to manage your money effectively. To help prevent overdrafts, you can take advantage of account alerts, free overdraft transfers from your other accounts, or lines of credit to help you manage your account. For more information, please visit us at redwoodcu.org/overdraft-protection.

In addition, RCU offers free confidential budgeting and money management assistance from BALANCE Financial Fitness. Visit redwoodcu.org/balance or call 1 (888) 456-2227 for help.

You can update your OPA settings at any time by logging in to your account, calling us at 1 (800) 479-7928, or visiting a branch. We’re here to help.

Overdraft Options Comparison

	Overdraft Account Transfer	Overdraft Line of Credit	OPA – All Services	OPA – Checks and Electronic (ACH) Transactions Only	No Coverage
How does it work?	Funds from your RCU savings and/or money market account will be automatically transferred to your checking account in $100 increments to cover the transaction. RCU does not charge a fee for this service.	Funds from your overdraft line of credit will be advanced in $100 increments to your checking account to cover the transaction.	Instead of a transaction being returned or being declined, RCU may pay the transaction on your behalf.	Instead of a transaction being returned or being declined, RCU may pay the transaction on your behalf.	Checks and electronic (ACH) transactions will be returned unpaid. Automatic recurring debit card payments will be declined. Everyday debit card transactions will be declined at the point of sale.
What does it cover?	Checks Automatic recurring debit card payments Electronic transfers (ACH) Everyday debit card purchases	Checks Automatic recurring debit card payments Electronic transfers (ACH) Everyday debit card purchases	Checks Automatic recurring debit card payments Electronic transfers (ACH) Everyday debit card purchases	Checks Automatic recurring debit card payments Electronic transfers (ACH)	N/A
What does it cost?	Free.	Daily interest is charged on the outstanding balance. (If there is no balance, no interest or fees are charged.)	You are only charged a fee if you use the service. $19 per presentment. Items may be presented more than once by the originating company/merchant. After a transaction is paid by RCU, you’ll be asked to make a deposit to cover the negative balance in your account immediately.	You are only charged a fee if you use the service. $19 per presentment. Items may be presented more than once by the originating company/merchant. After a transaction is paid by RCU, you’ll be asked to make a deposit to cover the negative balance in your account immediately.	$9 non-sufficient funds (NSF) fee per presentment. Items may be presented more than once by the originating company/merchant.
Are there any restrictions?	If your designated savings/money market account does not have at least $100, the transfer cannot be processed to cover your overdraft.	If your line of credit does not have at least $100 available, or if your loan payment is late, the transfer cannot be processed to cover your overdraft.	Transactions will be paid up to your OPA limit.	Everyday debit card transactions will be declined. If a merchant fails to seek authorization for the full amount, the debit card transaction will be paid without a fee. Other transactions will be paid up to your OPA limit.	Everyday and recurring automatic debit card transactions will be declined. If a merchant fails to seek authorization for the full amount, the debit card transaction will be paid without a fee.
How do I sign up?	Please log in to your account to sign up. Learn how to sign up for Overdraft Account Transfer. You may also call us at 1 (800) 479-7928 or visit your local branch.	Apply for a line of credit	Please log in to digital banking and click the Member Services tab and Overdraft Pay Advantage.	Please log in to digital banking and click the Member Services tab and Overdraft Pay Advantage.	Please log in to digital banking and click the Member Services tab and Overdraft Pay Advantage.

¹ Overdraft Pay Advantage can be used to pay your checks, automatic bill payments (such as Automatic Clearing House or recurring debit card transactions), and your everyday debit card transactions. When the service is used, a fee is charged (up to the maximum 4 charges per day). After a transaction is paid, you’ll be asked to make a deposit to cover the negative balance in your account immediately, and no later than within 20 days. If your account is not in good standing or you have not made regular deposits into your account, we may not be able to extend Overdraft Pay Advantage services to pay your transaction.

² Certain restrictions apply. RCU reviews transactions paid by Overdraft Pay Advantage the following calendar day at 11:00 a.m. Pacific Time for potential fee reversal (“Next Day Grace”). If, at time of Next Day Grace, you have enough available funds to pay all overdrafts along with any associated Overdraft Pay Advantage Fee, plus any and all other items and fees presented against your account at the time of processing, RCU will reverse the Overdraft Pay Advantage Fee. Any fee reversals will be posted after 11:00 a.m. Pacific Time at a time set at RCU’s sole discretion. If you do not have enough available funds to pay all overdrafts (and all other items and fees presented against your account as of the time of processing), the Overdraft Pay Advantage fee will not be reversed. Your available balance is the amount you have in your account at a particular time that is available for immediate withdrawal and reflects any holds for pending transactions. For additional details on the availability of your funds for withdrawal, please refer to your Membership Account Disclosure. Fee reversals are not guaranteed and are done at RCU’s sole discretion. RCU reserves the right to change the fee reversal program at any time without notice.