What Is Overdraft Protection?

An overdraft occurs when the Bank pays a transaction, even though the customer has insufficient funds. Overdraft protection is discretionary and is not a contractual obligation of the bank.

We may initially provide eligible accounts with $100 in overdraft protection. These include checking accounts, excluding money market, student, and business checking products. Once the account has been open for at least 90 days, we may periodically increase the overdraft protection amount to a maximum of $500. However, you must maintain your account in good standing. You will be notified in writing before any other increase occurs, should you qualify.

If you want to add overdraft protection to your account, please visit any of our offices. You will need to sign the appropriate agreements and disclosures.

What Fees Are Associated With Overdraft Protection?

If the funds in your account are insufficient to pay for an item when it is presented, we will charge you a $39 fee, regardless of whether we pay the item or return the item unpaid. However, we will not charge either a Returned Item and/or Overdraft Fee(s) for items resulting in an overdrawn balance of less than $10.

We will limit daily overdraft fees charged to an account to a maximum of 5 fees ($195). In addition, we will charge a daily continuous overdraft fee of $7.50 per Open Business Day. This will occur if the account remains negative for more than three consecutive business days, regardless of having overdraft protection. You should always cover your overdraft quickly to avoid additional fees. You must cover your overdraft within 60 days, or the account will be closed. Returned Item and/or Overdraft Fee(s) may be created by check, ACH, foreign ATM(s) and Debit Card/Check Card transactions.

Understanding Your Account Balance for Overdrafts

Your checking account has two kinds of balances: the current balance and the available balance. When the bank processes items to your account, the current balance plus your overdraft protection, minus any holds on the account, are considered. If the funds are not in this balance, you can have an overdrawn account. To learn more about Current Balance and Available Balance, continue reading below.

The information below explains how your checking account balance works. It also details the differences between your current balance and your available balance.

Your Current Balance

Your current balance is the amount of money actually in your account at any given time. This balance reflects transactions that have been “posted” to your account. However, it does not include transactions that have been authorized and are pending. While it may seem your actual balance is the most up-to-date display of the funds you can spend, this is not always the case. Your account may have purchases, holds, fees, other charges, or deposits made to the account. These may not have been posted and, therefore, will not appear in your current balance.

Your Available Balance

This balance reflects any holds placed on deposits you have made. Also included are any pending incoming electronic deposits (such as payroll), any pending debit card transactions, and any funds still available from your overdraft protection (if applicable).

Example of Overdraft Fee /or Insufficient Available Balance

If the current balance and available balance are both $100 and your debit card is used at a restaurant for $35, a hold is placed on your account and the available balance will be reduced.

Your current balance is still $100 because the transaction has not yet been posted to your account. If a check you previously wrote for $75 is presented for payment before the restaurant charge is sent to us for processing, you will incur an overdraft fee. This is because the available balance was $65 when the $75 check was paid. In this case, we may pay the $75 check and charge you an overdraft fee. The overdraft fee will also be deducted from your account, further reducing the balance.

How Are Transactions Posted to Your Account?

There are two main types of transactions in your account: credits or deposits of money into your account and debits or payments out of your account. Understanding how each transaction is handled is essential so you can remain informed of your actual balance. The information below describes how we handle credits and debits to your account. It also shows the resulting impact on your available balance. The information is a general description of how certain types of transactions are posted. We may receive multiple deposit and withdrawal transactions on your account in many different forms throughout the day. You may be charged more than one overdraft fee if we pay multiple transactions when your account is overdrawn.

Credits

Most deposits are added to your account when we receive them. For some checks you deposit there may be holds placed.

Please see the Funds Availability Statement at the end of this FAQ.

Debits

You can make several types of debit transactions from your account. Keep in mind there are many ways transactions are presented for payment by merchants and other financial institutions and we are not necessarily in control of when transactions are received and posted to your account.

What Is A Debit Card Authorization Hold?

When a debit card is used to conduct a signature or “credit” transaction (you do not enter your PIN), the merchant sends an amount. This amount is placed on hold and removed from the available balance immediately. The hold is released when the transaction clears or after the merchant’s authorization expires; whichever comes first. The authorization expiration is set by the merchant and can stay as long as six days if the matching transaction is not processed. The hold helps determine the available balance on your account.

Will Debit Card Authorization Holds Apply To All My Purchases?

No, debit card authorization holds only apply to debit card transactions when you sign your name or do not enter a PIN. PIN-based and ATM transactions nearly always settle on the same business day as they are authorized.

What Is The Difference Between Current Balance And Available Balance?

Your available balance reflects any authorization holds or deposit holds. It is used by the bank to determine available funds when transactions attempt to clear your account. The balance we use as transactions clear is called your available balance. It includes all items that have cleared your account up to that point and reflects any items on hold. If your available balance cannot cover a transaction, we may pay the item and charge an overdraft fee.

Generally, available funds are reduced by the amount of authorized transactions. However, for certain types of transactions, the amount authorized often differs from the amount that will settle. For example, gasoline purchases – the bank may reduce the available funds by the full authorization amount (which could exceed the actual purchase amount), reduce the available funds by an amount substantially less than the purchase amount (such as $1), or elect not to make any reduction in available funds.

How Can I Opt-out Of Overdraft Protection?

If you decide you no longer want overdraft protection on your account, simply call or visit one of our offices to request to opt-out. An in-office request may require signing opt-out paperwork. 

What Are My Alternatives To Overdraft Protection?

The bank can easily set up an automatic sweep transfer. For example, if you would like, your savings account can cover your checking account every time the latter is overdrawn. The bank will charge $7 per sweep transfer. A transaction occurs every time the sweep occurs, not each item covered by the sweep. If you have both a sweep transfer and overdraft protection on your account, the sweep will occur before the overdraft protection. This will happen until there are no funds available within your overdraft limit. If you want to set up an automatic sweep transfer, please visit one of our offices. You will need to sign the appropriate form.

Another alternative to overdraft protection is a line of credit. To see if you are eligible for a line of credit, please contact any of our offices. Overdraft lines of credit incur a fee of $7 per transaction plus interest charges. A transaction is every time the sweep occurs, not each item covered by the sweep.

What Is The Difference Between A Sweep Transfer And Overdraft Protection?

A sweep transfer occurs when the bank completes the transfer of funds from another account to cover the overdrawn account. The bank charges a $7 fee per transfer for this service. Overdraft Protection occurs when the bank charges a fee ($39) for paying an item, which takes the checking account into the negative rather than returning the item.

Funds Availability Disclosure

Our policy is to make funds from your cash and check deposits available to you on the first business day after we receive your deposit. Electronic direct deposits will be available on the day we receive your deposit. Once the funds are available, you can withdraw them in cash. We will use these funds to pay the checks you have written.

For determining the availability of your deposit, every day is a business day, except Saturdays, Sundays, and Federal holidays. If you make a deposit before 6:00 P.M. Monday through Thursday or before 6:00 P.M. Friday on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after these cut-off times or on a day that we are not open then we will consider the deposit made on the next business day we are open.

Longer Delays May Apply

In some cases, we will not make all of the funds you deposit by check available to you on the first business day after the day of your deposit. Funds may not be available until the second business day after the day of your deposit. However, a minimum of the first $200.00 of your deposits may be available on the first business day.

If we do not make all the funds from your deposit available on the first business day, we will notify you when you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you leave the premises, we will mail you the notice by the day after we receive your deposit.

If you need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a more extended period under the following circumstances:

• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000.00 on any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• There is an emergency, such as a failure of communications or computer equipment.

We will notify you if we delay your ability to withdraw funds and we will tell you when the funds will be available. They will generally be available no later than the 7th business day after the day of your deposit.

Special Rules For New Accounts

If you are a new customer, special rules will apply during the first 30 days your account is open. These rules are as follows:

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000.00 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state, and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000.00 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a US Treasury check) is not made in person to one of your employees, the first $5,000.00 will not be available until the second business day after the day of your deposits.

Funds from all other check deposits will be available on the 11th business day after the day of your deposit.

Are you interested in Overdraft Protection? Please stop by one of our locations for information or to sign the applicable applications and disclosures.