What kind of member writes NSFs?
They are members you deal with every day. They represent all income levels. Approximately 60% of consumers do not balance their checkbooks each month, but are otherwise capable, competent and financially trustworthy. Today, low/no interest rates on savings/checking accounts have prompted many credit union members to purposely limit saving and checking balances in order to get a higher rate of return on their savings funds. Consequently, important members may not qualify for traditional overdraft protection services. Consequently, Overdraft Protection that is tied to a transfer of the members own (savings) funds is often misleading or an illusion of protection. Your members are not likely to blame themselves for not keeping enough money in their savings accounts who do you think they will blame when the protection is not available?
