Protecting Yourself from Overdrafts

How Do Overdrafts Happen?

An overdraft occurs when you try to spend more money than you have in your checking account.

When you don’t have enough money in your account to cover a transaction:

  • The transaction is rejected.

  • The transaction is paid, causing your account to become negative, which is called an overdraft.

In both cases, a fee may be charged to your account. The amount you are overdrawn, plus any fees, will be deducted immediately from your next deposit.

How to Avoid Overdrafts and Fees

We believe that financial education helps our members make informed decisions. Here are some simple steps you can take to avoid overdrafts and related fees:
  • Know your balance and keep track of your deposits and payments, including those that are scheduled to occur automatically.

  • Take time to balance your checking account with your monthly statement.

  • Sign up for direct deposit.

  • Keep a small cushion in your checking account.

  • Sign up for low-balance email or text alerts.

What You Need to Know About Overdraft Protection Plans:

  • Avoid using these plans as short term loans; they are costly forms of credit.

  • If you overdraw your account, put money back into your account as soon as possible. Remember to put enough money back into your account to cover both the amount of your overdraft and any fees.

  • Even if you have one of these plans, there is no guarantee that Metro will cover your checks, ATM withdrawals, debit card and other electronic transactions that overdraw your account.

Good account management is the best way to protect your hard-earned money!

Call 877.MY.METRO and speak with a Metro representative about the choices and services that are right for you.