What is the difference between a non-sufficient funds fee (NSF) and an overdraft fee?

A non-sufficient funds (NSF) fee is the fee charged when an item attempts to clear an account and there are not sufficient funds to pay it. These items are returned unpaid and an NSF fee of $20 per item is assessed to the account. The maximum NSF charge is $60 per day.

An overdraft is when the credit union automatically transfers funds from savings or an Overdraft Line of Credit to cover an item presented in your checking. Your first 3 overdrafts per month from savings are free, each additional transfer is $10, up to a maximum of 6 transfers per month as stated by Federal Regulation D. Transfers from an Overdraft LOC are $2 per transfer, with no monthly maximum.