Is Overdraft Protection Right for You?

What is overdraft protection?

Overdraft protection is a service that helps ensure your payment transactions are completed even if your checking account balance falls below zero. With overdraft protection, KeyPoint Credit Union may temporarily cover the shortfall so everyday payments—such as debit card purchases, checks or recurring bills—can still go through.

Overdraft protection can be especially helpful in preventing declined transactions, missed payments or service interruptions when timing or unexpected expenses cause a temporary gap in your account balance.

Understanding the cost of convenience

Like many financial services, overdraft protection offers convenience that may come with a fee, depending on how your financial institution structures the program. Some banks and credit unions charge a fee each time an overdraft occurs, which can add up if multiple transactions are processed before you notice the low balance.

Here at KeyPoint, we are proud to offer overdraft protection designed for our Members, at a minimal fee of $14 per overdrawn transaction.*

Using Overdraft Protection responsibly

Overdraft protection is intended to be a safety net, not a primary budgeting tool. Although checking transactions may continue to be approved, it’s still important to regularly monitor your account balance and spending activity. Staying engaged with your finances helps ensure overdraft protection remains a helpful backup rather than a frequent necessity.

Is Overdraft Protection Right for You?

Overdraft protection can be a valuable tool—to get the most benefit from this service while minimizing fees, consider pairing it with these smart financial habits:

  1. Link your checking account to a savings account or line of credit
    Automatic transfers from savings or loan advances from lines of credit may cover checking balance shortfalls at little or no cost. (Lines of credit require application and credit approval.)
  2. Maintain a small buffer in your checking account
    Keeping an extra $100–$200 can help absorb minor timing issues or unexpected expenses.
  3. Use budgeting tools in your KeyPoint Mobile App
    These tools make it easier to track spending and stay aware of your available balance.
  4. Set Up Account Alerts
    Online and mobile banking alerts, such as low balance alerts, negative balance alerts, and payment due alerts can provide advanced notice of a payment that is due or if a balance is falling below a specified dollar amount.


Overdraft protection can be a helpful financial tool but is a discretionary service and not guaranteed. By understanding how it works and combining it with good money management practices, you can enjoy added flexibility while staying in control of your finances.

To learn more about overdraft protection options, explore our FAQs or ask a KeyPoint financial service representative.

*Overdraft protection, called "Courtesy Pay" at KeyPoint, has no limit on the number of fees that can be charged per day. Courtesy Pay may cover checks, automatic (ACH) payments, online and phone payments, and recurring debit card payments. Courtesy Pay with Extended Coverage may also cover everyday debit card purchases and ATM transactions. Negative balances must be restored within 32 days or access to the checking account may be suspended. Availability of Courtesy Pay is never guaranteed. Courtesy pay will not be available if checking account is less than 60 days old, checking account does not receive regular deposits, member is in default on any obligations to KeyPoint, or in KeyPoint's judgment the checking account has had too many overdrafts. Some KeyPoint checking accounts come with Courtesy Pay as a standard feature. Student Checking, Youth Checking, and New Start Checking do not offer Courtesy Pay. Members can add Extended Coverage by written election. Courtesy pay elections can be changed at any time.