Money Minutes | General Electric Credit Union Blog | Financial Resources

Sure-fire Ways to Avoid a Checking Account Overdraft

Dec 17, 2021 | 4 minute read

checking account overdraft

Overdrafts are a drag. Luckily, you can do your best to avoid them by embracing some simple tips. The options below will help you leave checking account overdrafts behind as we approach the new year.

The Best Ways to Avoid a Checking Account Overdraft

1. Stay Up to Date on Accounts

The best way to avoid a checking account overdraft is to verify the funds you need are available in your account. In doing so, you’ll know if you have enough for that new phone or your automated monthly bills. With digital banking tools like online banking or mobile banking apps, you can see your balance in real time and check it as often as you like – even when you’re on the go!

2. Overdraft Protection

The best credit unions and banks have overdraft solutions you can enroll in for protection. General Electric Credit Union (GECU) offers three solutions depending on your needs:

Service

Fee

Overdraft Protection Transfers: Automatically move funds to a checking account from a GECU savings or money market account. Available for Simply FreeChoice, and Amplified High-Yield Checking accountholders.

$0 fee

Overdraft Line of Credit: This solution instantly transfers funds into a checking account from your line of credit. Your credit limit is based on your eligibility and individual credit factors.

$0 if the transfer is initiated in Online Banking or our mobile app in advance; otherwise, $2 per transfer (plus interest)

Courtesy Overdraft: Transactions made by: check, ACH, or Bill Pay are covered under this solution. It kicks in when you have insufficient funds in your account. 

$32 overdraft fee per item presented

Visit our overdraft solutions page to learn more and determine the right solution for you.

3. Set Up Notifications

Customize your Online Banking and mobile account alerts so you know when an account has a low balance. This will allow you to replenish funds or hold off on transactions until you’re able to do so. Text banking can also provide you with a quick snapshot of your accounts, right on your device. GECU Online Banking and mobile app users can text “BAL” to 454545 to instantly see their balance and “TRANS” to transfer money between accounts. Lastly, GECU checking account holders can check their balance fast with Quick Balance. Enable this feature in our mobile app and you’ll gain access to a quick overview of your account just by swiping down on the login screen – no logging in required!

4. Use a Budgeting App

Sometimes, an overdraft can occur due to overspending and not keeping an eye on your balance when you make a purchase. GECU’s Money Management app lets you set up a visual budget and sends you alerts when you’re projected to exceed a monthly limit in a certain category. With a plan in place, you’ll know how much money is coming in and where money is being spent.

Ready to kick checking account overdrafts to the curb? GECU can help make it happen with Online Banking, overdraft solutions, and account alerts. You’ll always know how much money you have and a safety net if you forget to check. Click the button below to enroll in Online Banking today.

 

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We provide Online Banking and our mobile app to you for free; however, message and data rates may apply. Contact your service provider for details.

 

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