Mountain America Credit Union is a member-owned, not-for-profit financial institution that has been serving the needs of its members for over 80 years. One of the services they offer is an overdraft limit, which can provide a safety net for members who may accidentally overspend in their checking account. In this article, we will explore Mountain America Credit Union’s overdraft limit in more detail, including how it works, how it can be helpful, and some interesting facts about this service.
1. What is an overdraft limit?
An overdraft limit is a predetermined amount that a financial institution allows a customer to overdraw their checking account. This means that if the customer makes a purchase that exceeds the available balance in their account, the transaction will still go through, up to the specified limit.
2. How does Mountain America Credit Union’s overdraft limit work?
Mountain America Credit Union’s overdraft limit works by allowing members to overdraw their checking account up to a certain amount, typically between $500 and $1,000. If a member makes a purchase that exceeds their available balance, the transaction will still be approved, up to the specified limit. However, the member will be charged an overdraft fee for each transaction that exceeds their available balance.
3. How can an overdraft limit be helpful?
An overdraft limit can be helpful in providing a safety net for members who may accidentally overspend in their checking account. It can prevent transactions from being declined at the point of sale and can help members avoid costly fees from merchants for returned checks or declined transactions.
4. What is the cost of using the overdraft limit at Mountain America Credit Union?
Mountain America Credit Union charges a fee of $29 for each transaction that exceeds the available balance in a member’s checking account. This fee is charged in addition to the amount of the overdraft and must be repaid along with the overdraft amount.
5. How can a member calculate their overdraft limit at Mountain America Credit Union?
To calculate their overdraft limit, a member can simply contact Mountain America Credit Union and ask what their predetermined limit is. The limit is typically based on factors such as the member’s credit history, account activity, and relationship with the credit union.
6. Can a member opt out of having an overdraft limit at Mountain America Credit Union?
Yes, members can opt out of having an overdraft limit at Mountain America Credit Union by contacting the credit union and requesting to have the service disabled on their account. However, it is important to note that without an overdraft limit, transactions that exceed the available balance in the account will be declined at the point of sale.
7. What happens if a member exceeds their overdraft limit at Mountain America Credit Union?
If a member exceeds their overdraft limit at Mountain America Credit Union, the transaction will be declined at the point of sale, and the member will not be charged an overdraft fee. However, the member may still be charged a fee by the merchant for the declined transaction.
8. Can a member change their overdraft limit at Mountain America Credit Union?
Yes, members can request to have their overdraft limit increased or decreased at Mountain America Credit Union by contacting the credit union and speaking with a representative. Changes to the overdraft limit are subject to approval based on the member’s account activity and credit history.
Example of How to Calculate the Equation:
Let’s say a member has an overdraft limit of $500 at Mountain America Credit Union. If the member makes a purchase for $600 and only has $400 in their account, the transaction will still go through, and the member will be charged a $29 overdraft fee. The member’s account will then have a negative balance of $129 ($600 – $400 + $29).
Common Questions about Mountain America Credit Union’s Overdraft Limit:
1. What is Mountain America Credit Union’s overdraft limit?
Mountain America Credit Union’s overdraft limit is typically between $500 and $1,000.
2. How does the overdraft limit work at Mountain America Credit Union?
The overdraft limit allows members to overdraw their checking account up to a certain amount, with a fee of $29 per transaction.
3. Can a member opt out of having an overdraft limit at Mountain America Credit Union?
Yes, members can request to have the overdraft limit disabled on their account.
4. What is the cost of using the overdraft limit at Mountain America Credit Union?
Mountain America Credit Union charges a fee of $29 for each transaction that exceeds the available balance in a member’s checking account.
5. How can a member calculate their overdraft limit at Mountain America Credit Union?
Members can contact Mountain America Credit Union to find out what their specific overdraft limit is.
6. What happens if a member exceeds their overdraft limit at Mountain America Credit Union?
If a member exceeds their overdraft limit, the transaction will be declined at the point of sale, and the member will not be charged an overdraft fee.
7. Can a member change their overdraft limit at Mountain America Credit Union?
Yes, members can request to have their overdraft limit increased or decreased by contacting the credit union.
8. How can an overdraft limit be helpful for members at Mountain America Credit Union?
An overdraft limit can provide a safety net for members who may accidentally overspend in their checking account.
9. Are there any penalties for using the overdraft limit at Mountain America Credit Union?
The only penalty is the $29 fee for each transaction that exceeds the available balance in a member’s checking account.
10. Is the overdraft limit available for all types of accounts at Mountain America Credit Union?
The overdraft limit is typically available for checking accounts at Mountain America Credit Union.
11. Can a member have multiple overdraft limits at Mountain America Credit Union?
No, each member is typically only allowed one overdraft limit on their checking account.
12. How often can a member use their overdraft limit at Mountain America Credit Union?
Members can use their overdraft limit as often as needed, up to the specified amount.
13. Is the overdraft limit automatically applied to a member’s checking account at Mountain America Credit Union?
Yes, the overdraft limit is automatically applied to a member’s checking account unless the member opts out of the service.
14. Can a member request to have the overdraft limit removed from their account at Mountain America Credit Union?
Yes, members can request to have the overdraft limit disabled on their account.
15. Are there any restrictions on the types of transactions that can be covered by the overdraft limit at Mountain America Credit Union?
The overdraft limit typically covers all types of transactions, including debit card purchases, checks, and electronic transfers.
16. How can a member monitor their overdraft limit usage at Mountain America Credit Union?
Members can monitor their overdraft limit usage by checking their account balance regularly and keeping track of their transactions.
Final Thoughts:
Mountain America Credit Union’s overdraft limit can be a useful tool for members who may occasionally overspend in their checking account. By providing a safety net for transactions that exceed the available balance, the overdraft limit can help members avoid declined transactions and costly fees from merchants. However, it is important for members to be aware of the fees associated with using the overdraft limit and to monitor their account balance regularly to avoid unnecessary charges. Overall, the overdraft limit can be a helpful service for members of Mountain America Credit Union who may need a little extra financial flexibility from time to time.