How Much Can You Overdraft Navy Federal?
As a member of the Navy Federal Credit Union, you’re likely aware of the convenience and flexibility of overdraft protection. Overdraft protection is a safety net that allows you to cover unexpected expenses or overdrawn accounts, providing peace of mind and avoiding costly fees. But how much can you overdraft with Navy Federal?
Understanding Overdraft Protection
Before diving into the specifics of overdraft limits, it’s essential to understand how overdraft protection works. When you open an account at Navy Federal, you have the option to link a savings account or another deposit account to your checking account. This linked account is used to cover overdrafts, ensuring that your checking account doesn’t become overdrawn.
Here are some key points to keep in mind:
• Overdraft protection is available for checking accounts only.
• Overdraft protection transfers from a linked savings account or another deposit account to your checking account.
• Overdraft protection transfers are limited to the amount available in the linked account.
Navy Federal Overdraft Limits
Navy Federal has different overdraft limits depending on your account type and membership. Here’s a breakdown of the overdraft limits for each account type:
Checking Accounts
| Account Type | Overdraft Limit |
|---|---|
| Free Checking | $200 (or the available balance in the linked account) |
| Active Duty Checking | $200 (or the available balance in the linked account) |
| Navy Federal Platinum Credit Card Rewards Checking | $1,000 (or the available balance in the linked account) |
| Premium Rewards Checking | $1,500 (or the available balance in the linked account) |
Savings Accounts
| Account Type | Overdraft Limit |
|---|---|
| Primary Savings | $200 (or the available balance in the account) |
| Additional Savings | $200 (or the available balance in the account) |
Important Notes:
• Overdraft limits may vary based on your creditworthiness and account history.
• Navy Federal reserves the right to decline or reduce overdrafts if the linked account does not have sufficient funds to cover the overdraft.
Consequences of Exceeding Overdraft Limits
If you exceed your overdraft limit, Navy Federal may:
• Charge an overdraft fee of $28 per item (online bill pay, mobile deposits, or checks)
• Charge a non-sufficient funds (NSF) fee of $28 per item (at ATMs or merchants)
• Waive the overdraft protection transfer fee (typically $20 per transfer)
Tips for Avoiding Overdrafts and Fees
To avoid exceeding your overdraft limit and incurring fees, consider the following:
• Monitor your account balance regularly to avoid overdrafts.
• Link a savings account or other deposit account to your checking account for overdraft protection.
• Avoid using checks or debit cards for transactions that exceed your available balance.
• Use online bill pay or mobile deposits instead of checks for bill payments.
• Set up low-balance alerts to notify you when your account balance is low.
Conclusion
Navy Federal’s overdraft limits are designed to provide a safety net for unexpected expenses, but it’s essential to understand the limits and potential consequences of exceeding them. By monitoring your account balance, linking a savings account, and avoiding overdrafts, you can maintain a healthy account balance and avoid unnecessary fees. If you have any questions or concerns about Navy Federal’s overdraft policies, consider contacting their customer service department for assistance.
