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Overdraft Protection

Last Updated

September 16, 2022

Updated overdraft terms as of September 16, 2022.

You spoke. We listened. As of September 16, 2022, we launched improved overdraft terms to help our members save money and stress less if overdrafts occurs. Get the details here.

Overdraft Protection, Options and Fees

Nobody likes an unexpected overdraft. That’s why we have created this guide to help you understand the basics of how your account works, so next time you can avoid unexpected fees.

How Do Overdrafts Occur?

An overdraft occurs when there isn’t enough money in your account and a payment goes through anyway. Sometimes instead of incurring an overdraft, the payment will get rejected for non-sufficient funds. If your account overdrafts or has payments returned for non-sufficient funds, you may have to pay fees.

What Can I Do to Avoid Overdrafts and Non-Sufficient Funds?

The best way is to ensure that you always have enough money in your account from the time a transaction is initiated until it posts to your account. However, with our online, mobile and text banking tools, there are things you can do to help minimize the possibility of an overdraft, including:

Track Your Balance

Know your balance before you spend. Log in to Online Banking or Mobile Banking to check your account activity. You can also check your balance by calling 1-833-427-2265. For members using a TDD/TTY device, please call 1-800-539-8336.

Remember to consider any outstanding checks or scheduled payments.

Know Your Overdraft Protection Options

At Laurel Road you have choices on how you’d like your account to work in an overdraft situation. From savings to a credit card, choose another Laurel Road account to back up your checking account to help avoid fees.

Set Up Alerts

Balance Alerts can help you avoid overdrafts and the fees that come with them, while Transaction Alerts can tell you when deposits and credits post to your account.

Overdraft Services

Laurel Road will not authorize and pay overdrafts for the following types of transactions unless you ask us to.

  • ATM transactions
  • Debit card purchases1 (purchases made with your debit card on a day-to-day basis)

Consent to Overdraft Services

We can’t guarantee we will authorize and pay every type of transaction, so you may be declined for the above types of transactions. And, if an item is returned unpaid, your account may be charged a non-sufficient funds (NSF) fee.

If you choose to decline the Overdraft Services, ATM transactions and everyday debit card transactions that would cause your account to be overdrawn will typically be declined. However, overdrafts may still be paid at our discretion on checks, automatic bill payments and recurring debit card transactions.

To consent to Overdraft Services or change your selection:

  • Sign into Online Banking or the Mobile Banking application and select Financial Details
  • Call 1-833-427-2265

Decline all Overdrafts

You may prevent Laurel Road from paying for some transactions when your account does not contain sufficient available funds. Call 1-833-427-2265

Overdraft Protection Options

You can choose another Laurel Road account to back up to your checking account and help pay for any overdraft transactions that may occur. Depending on what you choose, an overdraft protection transfer fee may apply, but you’ll save money by avoiding overdraft fees and any non-sufficient funds fees that could be charged.

How many fees can I be charged in a day?

We understand that accidents happen, so KeyBank limits the number of fees for overdraft and non-sufficient funds to a maximum of three per day. In rare cases, the transaction and the related fee may not post on the same day, so it could appear that more than three fees were charged. But despite appearances, you will not be charged a fee for more than three transactions per day.


If you overdraw your checking account, funds can be automatically transferred from your Laurel Road High Yield Savings Account, and Linked Savings Account without an overdraft protection transfer fee charged.

Credit Card

Your Laurel Road credit card can automatically transfer funds to your checking account to cover any overdrafts. Funds are transferred once per day to cover all overdrafts from that day and only one overdraft protection transfer fee is charged per day which reduces the amount of overdraft fees you may otherwise be charged.

  1. Excludes all checks, automatic bill payments and recurring debit card transactions.