Overdraft Protection Options

Overdraft Protection

Avoid declined transactions and fees with overdraft protection.

What is Overdraft Protection?

Overdraft protection covers transactions when your account balance is insufficient:

• Prevents declined debit card purchases
• Avoids bounced checks
• Covers ACH payments
• Protects your credit reputation

Protection Options

Linked Account Transfer:

• Links savings to checking
• Automatic transfers when needed
• $10 transfer fee per day (max 3 per month)
• Cheapest protection option
• How it works:
  • Transaction exceeds checking balance
  • Funds transfer from linked savings
  • Transfer fee assessed once daily
  • Transaction approved

Line of Credit:

• Pre-approved credit line
• $250 - $5,000 limit
• Interest charged on borrowed amount
• 12.99% APR
• No transfer fees
• How it works:
  • Account goes negative
  • Line of credit covers shortage
  • Repay at any time
  • Only pay interest on used amount

Standard Overdraft:

• Bank covers transactions at its discretion
• $35 fee per item (max 3 per day)
• Must opt-in for debit card coverage
• Not available for new accounts

Comparing Options

Type	Fee/Cost	Best For
Linked Account	$10 per day	Have savings balance
Line of Credit	12.99% APR	Occasional overdrafts
Standard	$35 per item	Rare emergencies only

Setting Up Protection

Linked Account:

1. Log in to online banking
2. Go to Services → Overdraft Protection
3. Select "Link Account"
4. Choose your savings account
5. Review terms and accept
6. Active immediately

Line of Credit:

1. Apply online or in branch
2. Provide income information
3. Credit check required
4. Approval typically same day
5. Sign agreement
6. Available once approved

Opting In/Out

For ATM and debit card overdrafts:

• Federal law requires opt-in
• Without opt-in, transactions decline
• Can opt-in or opt-out anytime
• Does not affect checks or ACH

To change opt-in status:

1. Log in to online banking
2. Go to Services → Overdraft Settings
3. Toggle debit card coverage
4. Or call customer service

Avoiding Overdrafts

Best practices:

• Track spending daily
• Set up low balance alerts
• Use mobile app to check balance
• Link external accounts for transfers
• Keep a buffer in your account
• Review pending transactions
• Sign up for text/email alerts

Understanding Fees

Standard Overdraft Fees:

• $35 per item that overdrafts account
• Maximum 3 fees per day ($105 total)
• $10 continuous negative balance fee (if negative 5+ days)

Fee Refunds:

• One courtesy refund per year
• Contact customer service
• Explain circumstances
• Approved at bank's discretion