Overdraft Privilege

Overdraft Privilege Service

To participate in our Overdraft Privilege Service, you must sign up so that your account can be reviewed to determine if it is in good standing. This is defined as making regular deposits and bringing your account to a positive balance at least once every 30 days. If you are a new account holder, your account may be subject to a 30 day review period. Bankruptcy proceedings, legal orders, outstanding liens or levies, as well as charged-off accounts and past due loans are also taken into consideration in determining whether or not your account is in good standing.

You may cancel this service at any time, but you are responsible for any overdrawn balances at the time of opting out.

Overdraft Privilege is available on checks, in-person withdrawals, and other transactions made using your checking account number; Electronic Funds Transfers (ACH – automated clearing house payments) from your checking, and automatic bill payments. Your everyday debit card and ATM transactions will not be covered by Overdraft Privilege, unless you OPT IN. You may Opt In for coverage on these transactions by filling out the separate Opt In form. An overdraft fee may be imposed for any of the following types of transactions: check, in-person withdrawal, ATM withdrawal, or other electronic means. A fee will only be imposed on ATM withdrawal or everyday debit card transactions if you Opt-In.

Our Overdraft Fee is $25 per item. If overdrafts occur above and beyond your Overdraft Privilege limit, the item may be returned to the payee and our Nonsufficient Funds (NSF) Fee of $25 per item will be assessed. Multiple Overdraft and NSF fees may be charged during a single day.

Overdrawn balances and NSF fees should be repaid as soon as possible, but at least within 30 days; failure to repay could result in removal of your account from the Overdraft Privilege Service and account closure. Charged-off overdrawn accounts in excess of the ODP limit may be subject to credit bureau reporting.

If there is an overdraft item paid by us on an account with more than one owner on the signature card, each owner shall be jointly and severally liable for each such item plus our Overdraft or NSF fees. Overdraft fees, as well as the amounts of the overdraft items, will be deducted from your Overdraft Privilege limit. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds. For example, we may not pay your items if you do not make regular deposits and keep your account in good standing or if you exceed your Overdraft Privilege limit. For consumer accounts with Overdraft Privilege, we will limit the number of fees incurred within the OD limit to a maximum of 3 items per day. If your end of the day overdrawn balance is less than $10, you will not be charged an Overdraft fee.

The following are definitions related to fees:

Overdraft (OD) Fee – a $25 per item fee will be assessed for each overdraft item paid by check, in-person withdrawal, ATM withdrawal, or other electronic means.

Nonsufficient Funds (NSF) Fee for Returned Item - a $25 per item fee will be assessed for each item created by check, debit, or other electronic means that is returned unpaid.

Payment Order of Items

We may pay items drawn on your account in any order, as permitted by law. Transactions are not necessarily processed in the order in which they occurred, and the total amount of overdraft fees that you incur may be affected by the order in which we receive and process transactions. To limit or avoid Overdraft and NSF fees against your account, we encourage you to keep accurate records of your transactions and practice good account management. To assist you in managing your account, here is general information regarding how we process your items.

When processing items on your account, we consider items according to transaction type. Within each separate transaction type discussed below, items are paid in the order of the lowest amount to the highest amount.

First, we post your deposits and any other credits.

Next, we pay priority items such as items that did not post to your account the prior business day, Debit Card and ATM transactions, and Over the Counter transactions. These categories may represent separate transaction type items and are posted accordingly.

Then, we post electronic transactions, such as Internal Transfers (for example, transfers between your deposit accounts with us), ACH, and Internet Banking transactions. Checks which are presented to us electronically will post in this category.

Next, we post all other checks.

The circumstances under which we would not pay an item that would overdraw your account are entirely within our discretion, and we reserve the right not to pay. The fact that we may pay one or more overdraft item(s) does not obligate us to do so in the future. In addition, we reserve the right to require you to pay an overdraft immediately.

We also reserve the right to limit participation to one account per household and to discontinue this service without prior notice.

Effective 11/2022