PALO ALTO, Calif.– Stanford FCU said it has discontinued non-sufficient funds (NSF) fees in its “ongoing efforts to find new ways to give back to its members.”
“Stanford FCU is dedicated to improving the financial lives of our members by offering as much value as possible. Over the past five years we have refunded over $2.3 million in fees to our members,” stated Stanford FCU President & Chief Executive Officer Joan Opp. “Our total fee income is only 2% of our income compared to an average 8% of other financial institutions, and the NSF Fee is one of the few fees left to eliminate.”
The $3.9-billion credit union said it is also revising their entire overdraft protection program to further benefit its members, with the changes scheduled to go into effect in the coming months.
Members Can Opt-In
“The new program will enable members to opt-in to decide whether the credit union should pay for items if their account balance is insufficient,” Stanford FCU said. “If a member opts-in to the new program, it will pay for checking, ACH and debit card purchases should an account go into a zero or negative balance. For transactions under $25, the charge will be paid with no overdraft fee. For purchases of $25 or more, the program will cover the cost of the charge, and the member will be charged a $25 fee. The new program will limit overdraft coverage to three transactions.”
Ability to Link
Stanford FCU added it is also allowing members to link their checking account to one other account such as a savings account. This service moves money from the savings to the checking account without a fee, should the member’s account accidentally go negative.
“We have never charged members an account transfer fee, unlike what many financial institutions have been doing for years,” said Opp.