Q: What is a “held funds fee?”
A: This has to do with how electronic payments (like using your debit card at a store) are processed. Say you have $100 in your account and you make a $70 purchase at Target. Target might not immediately withdraw the $70 from your account – but that $70 is theirs to “hold on to.” Then, you go to the grocery store and check your account through the mobile app; it still shows a $100 balance (because Target hasn’t taken their $70 yet). At the grocery store, you spend $50…and now your account is overdrawn by $20. When you view your transaction history, you’ll see the grocery store charge, along with a $30 held funds fee, because the funds Target was “holding on to” have been used. So, keep an eye on what you spend or, if you have a City CU savings account, sign up for overdraft protection transfer – that’s only $5 for each time you use it.