Very similar to a Line of Credit, and overdraft is attached to your Bow Valley Credit Union chequing account, and allows you access to extra funds should your account become overdrawn or you are running short on cash. Once approved for an overdraft you do not have to re-qualify to maintain one each year. Interest is charged monthly and debits right from your chequing account available balance. Interest is calculated only on the amount you have borrowed and not your approved limit, and is calculated based on your average daily balance you carried.
To help protect you and your loved ones, Bow Valley Credit Union offers life, disability and accidental insurance on our overdrafts. In the event something happens to you that could alter your ability to continue with payments, your insurance coverage will cover both interest payments due monthly, and pay back a part of the balance owing based on the amount owing over the past few months. This option provides you with the peace of mind knowing that your payments will be covered, while maintaining your good repayment history, so that you can focus on getting better. Flexibility is also available in that you only pay for insurance coverage monthly, based on the amount you had borrowed for the previous month.
Should you be using your overdraft to purchase a vehicle, repair your home or vehicle, etc. Bow Valley Credit Union offers Home and Auto Insurance with our partnership through Johnson Insurance. At discounted rates offered exclusively to our Bow Valley Credit Union Members, it is just one more reason to get a free no obligation quote and start saving today.