Information about share drafts
Welcome to the Revolution. Why are share drafts revolutionary? Share drafts are the most up-to-date program credit unions can offer their members among today's financial services. This service allows easy access to your funds anywhere, any time. Share drafts can save you money too; there is no monthly service charge and no minimum balance required. You may use share drafts as you would a personal check-to pay bills, to make purchases, to pay for services, and to receive cash. Merchants welcome your patronage with share drafts. Once you have joined the share draft revolution, you will enjoy the advantages of making money while accessing your money in the easiest possible way.
A share draft is a negotiable item much like a personal check. And a share draft account operates like a checking account, but offers additional benefits to you.
NO SERVICE CHARGE
If you have ever incurred a monthly service charge or per check fee on your bank checking account, you will enjoy the absence of those charges on this account. You are charged only for the cost of imprinting your personalized drafts.
Should you ever need a copy besides your own carbon copy, you may request one, either by phone or letter. There is a $2.00 service fee for each copy requested.
NO MINIMUM BALANCE
No minimum balance is required.
Deposits may be made by mail or in the office, or by taking advantage of payroll deduction. Direct deposit is available for retirement, social security checks and etc.
HOW TO OPEN AN ACCOUNT
Most members are eligible for a share draft account. However, a member must have a regular share/savings account before any other credit union service may be offered to them. Joint owners on a share draft account must be identical to those on the regular share/savings account. In the case of joint accounts, all owners have the right to make deposits and withdrawals independently. Write or stop by our credit union office and complete a share draft Signature Card. Your draft order may be completed at that time (allow two weeks for delivery). A cash deposit may be made or you may request a transfer of funds from your regular share savings account to your new share draft account in order to open your account. Be sure to make deposits to the share draft account before you withdraw money from it-protect yourself from overdrafts by always balancing your account.
In order for the share draft system to have complete acceptability, overdrafts must be held to a minimum. If non sufficient funds occur more than three times within any one quarter further ability to use share drafts may be denied. A $35.00 charge will be assessed for each draft that is insufficient.
Direct deposit is the sure way to have money in your share draft account when you need to write drafts for paying bills, etc. Military net paychecks, Social Security and VA Annuity checks may be automatically credited to your account on payday via the Treasury Department. Retired members are encouraged to take advantage of direct deposit of net checks to their share draft account. The forms you need are available at the credit union, and we'll process them for you.
HOW SHARE DRAFTS WORK
A share draft looks like a personal check printed on a distinctive paper. Your name, address and phone number may be printed on the top of the draft. To reorder share drafts, just fill out the reorder form enclosed with your drafts and mail it to us, or give it to a teller in the office. When you write a share draft, the business or individual you make it out to deposits it with their other receipts; the draft clears through banking channels and is charged against your account at Metro North Federal Credit Union. For "Pocket Money", simply cash a share draft at the credit union or where you do business. As you write a share draft, you make a carbonless copy which provides you with an immediate record of the draft you have just written. If you have ever written a check and forgotten to write it down in your check register you can understand the advantages and convenience of having a carbon copy of each draft you write. The carbonless copy, along with your monthly statement, will serve as proof of payment when needed-even for the Internal Revenue Service. Your canceled drafts will be microfilmed and stored safely for you.
Each month, a share draft account statement and a reconciliation form will be mailed to help you balance your account. Simply check off the drafts on your register that appear on the statement. Then complete the reconciliation form, referring to your carbonless copies for outstanding drafts written to reconcile your account.
STOP PAYMENT ORDER
You may request a Stop Payment Order" on a draft by calling or by visiting the credit union. If the draft has not yet cleared through your account, it will be returned unpaid to the payee. Stop Payment becomes effective 24 hours after formal request. There is a $20.00 service fee for "Stop Payment Orders".
The aggregate balance of your accounts (regular share accounts and share draft) are insured up to a maximum of $250,000 by NCUA, an agency of the U.S. Government.