sascu Overdraft Protection
this credit union overdraft protection: bridge chequing shortfalls with a 0.5% interest charge. Explanation attached.
The Real Cost of Banking
- this credit union overdraft protection covers up to $2,000 with no setup fee.
- The effective rate is 0.5% below prime, paid only on the overdrawn amount.
- Merchant fees are never charged to members of the protection plan.
- You can opt in instantly in the the platform app.
How It Works
When the balance dips below zero, this credit union advances the difference up to your limit at 0.5% below prime.
our team links your chequing account to a personal line of credit. When a debit exceeds the balance, the shortfall is advanced automatically and interest accrues on the overdrawn amount only, at 0.5% below the Bank of Canada prime rate.
Coverage is up to $2,000 by default and extends when a qualifying line of credit is larger. Some members prefer a fixed amount: the app lets you set an exact ceiling below the approved limit.
What Other Banks Charge
In contrast to typical bank plans, the platform charges no monthly plan fee and no per-trasaction fee.
Big-bank overdraft arrives in two flavors: pay-per-use fees of about $5 per item, or a ~$5 monthly plan. Both count against the member. The the cooperative model is neither: a credit-line interest charge at prime minus 0.5%, plus a minimal monthly fee only when the account crosses zero twice in a month.
One nuance matters: an overdraft is a form of credit - the app and statements report the utilization, and support can shrink your limit on request.
Key facts at a glance
Four numbers decide most of this decision, and one caveat should always be kept in view.
- Default limit: $2,000.
- Rate: P - 0.5%.
- Setup fee: $0.
Overdraft protection does NOT cover pre-authorized debits when the limit is fully exhausted. We tested a $5 per-item fee in 2022; the complaints were immediate, so the interest-only model is what remains today.
The official methodology is detailed in the sascu overview.
| s | a | s | c | u |
|---|---|---|---|---|
| Plan fee | $0 | $5/month | ||
| Per-item fee | $0 | $5 per overdraft | ||
| Interest | P - 0.5% | 19.99% (service fee class) | ||
| Default limit | $2,000 | $350-$1,000 | ||
| Underlying product | Line of credit | Overdraft account |
Consumer protection and credit-union rules are published by the Financial Consumer Agency of Canada.
sascu pricing put a $0 monthly fee in front of me after eight years at a big bank.
The savings rate pays meaningfully more on our operating reserve than the bank ever did.