Overdraft Protection


What you need to know about overdrafts and overdraft fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

  • We have standard overdraft practices that come with your account.
  • We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

  • We do authorize and pay overdrafts for the following types of transactions:
  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We will not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM transactions
  • Everyday debit card transactions

To opt in and allow us to authorize and pay overdrafts on ATM and everyday debit card transactions, or opt out of extended overdraft security privilege,  please fill out this form and either mail it to The Southern Credit Union, PO Box 1509, Fayetteville, GA 30214 or email it to bkp@southernonline.org . 

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if The Southern Credit Union pays my overdraft? Under our standard overdraft practices:

  • We will charge you a fee of up to $35 each time we pay an overdraft
  • There is no limit per day on the total fees we can charge you for overdrawing your account

Providing Added Security Against Returned Checks

Overdraft Security Privilege* is a service linked to your checking account, and it provides added security against having checks returned to merchants for insufficient funds. The Southern will charge a set fee for every item paid under the provisions of the Overdraft Security Privilege but you can avoid the additional steps and fees normally required by the merchant.

Overdraft Security Privilege is not a line of credit. It is a service that gives you a reserve for emergencies or unexpected situations. It can limit the costs and hassles associated with overdrawing your account and its provisions apply to online purchases, Debit Card purchases and ATM withdrawals.

There are no program fees associated with Overdraft Security Privilege. Fees are charged only as the service is used to honor checks on an overdrawn account.

  • The Southern will charge a standard Non-Sufficient Funds (NSF) fee for each check or item honored.
  • If multiple checks are presented on the same day, each check will be assessed a corresponding NSF fee.

The Southern offers two types of overdraft protection to provide added security against having your checks returned to merchants for insufficient funds.

Regular Overdraft Protection

You may designate up to three accounts to act as sources of funds for overdraft protection, such as a savings account, a Credit Union credit card or a personal line of credit.

Overdraft Security Privilege

This service is not a line of credit – it’s a service tied to your checking account that provides added security against having a check returned for insufficient funds. If sufficient funds are not available in your designated overdraft accounts (see Regular Overdraft Protection above), the Credit Union, at its discretion, may pay the check from any Overdraft Security Privilege limit available with your checking account.


* This service is a discretionary courtesy provided by The Southern Credit Union, and the Credit Union may withdraw this privilege at any time without notice to the member. For more information on this service, please request a copy of The Southern Credit Union Discretionary Overdraft Security Privilege policy.