How to Overdraft Navy Federal Account?
As a Navy Federal Credit Union member, you may be wondering how to overdraft your account. Overdraft protection is a service that allows you to cover unexpected expenses, but it’s essential to understand the process and potential fees involved. In this article, we’ll explain how to overdraft Navy Federal account, the associated fees, and how to avoid them.
Understanding Overdraft Protection
What is Overdraft Protection?
Overdraft protection is a service that helps you avoid overdraft fees by transferring funds from a linked account to cover insufficient funds in your checking account. This service is especially useful for unexpected expenses or financial emergencies.
Types of Overdraft Protection
Navy Federal offers two types of overdraft protection:
- LinkShare: This service links your checking account to a linked savings account, money market account, or credit union share account. When your checking account is overdrawn, funds are automatically transferred from the linked account to cover the overdraft.
- Overdraft Line of Credit: This service provides a line of credit that can be used to cover overdrafts. You can apply for an overdraft line of credit and use it to cover overdrafts or make purchases.
How to Overdraft Navy Federal Account
To overdraft your Navy Federal account, follow these steps:
- Apply for Overdraft Protection: If you haven’t already, apply for overdraft protection through the Navy Federal mobile app, online banking, or by visiting a branch.
- Link Your Accounts: Link your checking account to a linked savings account, money market account, or credit union share account using the LinkShare service.
- Set Your Transfer Limits: Set the amount you want to transfer from your linked account to your checking account. You can set a minimum transfer limit of $50 to $500.
- Overdraft: If you overdraft your account, funds will be automatically transferred from your linked account to cover the overdraft. You’ll receive a text or email notification of the transfer.
Overdraft Fees
Navy Federal Overdraft Fees:
- NSF (Non-Sufficient Funds) Fee: $28 per item (up to 3 items per day)
- Overdraft Line of Credit Fee: 18.00% APR (annual percentage rate)
- Late Payment Fee: $38
- Return Payment Fee: $28
Tips to Avoid Overdraft Fees
- Monitor Your Account Balance: Regularly check your account balance to avoid overdrafts.
- Set Up Alerts: Set up account alerts to notify you of low balances or pending overdrafts.
- Link Your Accounts: Use the LinkShare service to link your checking account to a linked savings account.
- Transfer Funds: Transfer funds from your savings account to your checking account before an overdraft occurs.
- Use Debit Cards Wisely: Avoid using debit cards when you’re low on funds.
Overdraft Limit
Navy Federal Overdraft Limit:
- Initial Overdraft Limit: $500 (subject to change)
- Maximum Overdraft Limit: $5,000 (subject to credit approval)
How to Request an Overdraft Limit Increase
- Online Request: Log in to online banking and request an increase through the "Services" tab.
- Phone Request: Call Navy Federal’s customer service at (888) 842-6328 to request an increase.
- Branch Request: Visit a Navy Federal branch to request an increase.
Conclusion
Overdraft protection is a convenient service that helps you avoid overdraft fees. To overdraft your Navy Federal account, apply for overdraft protection, link your accounts, set your transfer limits, and avoid fees by monitoring your account balance, setting up alerts, and transferring funds. Remember to review your overdraft limit and request an increase if needed. By understanding overdraft protection and avoiding fees, you can manage your finances effectively and enjoy the benefits of Navy Federal membership.
Table: Navy Federal Overdraft Fees
| Fee | Amount |
|---|---|
| NSF (Non-Sufficient Funds) Fee | $28 |
| Overdraft Line of Credit Fee | 18.00% APR |
| Late Payment Fee | $38 |
| Return Payment Fee | $28 |
Bullets: Tips to Avoid Overdraft Fees
• Monitor your account balance regularly
• Set up account alerts for low balances or pending overdrafts
• Link your checking account to a linked savings account
• Transfer funds from your savings account to your checking account before an overdraft occurs
• Use debit cards wisely and avoid using them when you’re low on funds
