Avoiding Overdrafts

Learn how to prevent overdrafts and use
available alternatives.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but as a convenience to you, the bank pays it anyway.

To help prevent overdraft fees or returned item fees, we recommend that you maintain all account activity in a register and balance your account frequently. Take advantage of all the services that come with your checking account. Questions? Read our FAQs.

To learn more about managing your account, print or download the booklet.

Overdraft Education Workbook

Ways to Manage Your Account

  • Use a check or debit card register
  • Set up online banking and monitor transactions frequently
  • Use online bill pay and track pending payments closely
  • Download a mobile banking app and monitor your accounts on the go
  • Use notifications such as email or text alerts for low account balances

Standard Overdraft Practices and Overdraft Alternatives

  • Standard overdraft practices include per item fees, and there are certain restrictions on limits and amount of fees charged. Fees, restrictions, and limits will vary between banks.
  • One alternative is linking a savings account to a checking to automatically cover any overdraft.
  • Another common alternative is a line of credit linked to a checking account to cover any overdraft.
Standard Overdraft Practices and Overdraft Alternatives

Frequently Asked Questions

What happens when my account becomes overdrawn?
  • We authorize and pay overdrafts on checks, automatic bill payments, and other transactions made using your checking account number, such as ACH direct debits at our discretion and a fee will be charged.
  • If an item is not paid, it will be returned and a fee will be charged.
  • If you have selected to "Opt-In," we will also authorize and pay overdrafts on ATM and everyday debit card transactions at our discretion and a fee will be charged.
  • Regardless of your choice to "Opt-In," there is no guarantee that we will cover an item that overdraws your account. We may deny payment of an item that overdraws your account at any time without prior notice.
  • If you have selected one of our overdraft alternatives, see below for details.
My account is overdrawn. What should I do?

As soon as possible, make a deposit large enough to cover how much you are overdrawn, the fees associated with your overdraft, and any outstanding payments that have not cleared your account yet.

What are the fees charged when I overdraw my account with this bank?
  • A $32.00 fee is charged for each transaction we decide to pay. We do not charge this fee if the transaction amount is $5.00 or less.
  • A $32.00 fee is charged for each item that we decide not to pay and is returned.
  • The maximum fee we will charge your account for overdrafs and returned items on any business day is $128.00.
  • A $0.50 fee is charged for a denied ATM transaction at a machine we do not own unless your account is covered under the Money Pass Network of ATMs.
What can I do to avoid overdraft fees?
  • Know your balance and pending transactions. Use a check or debit card register. Include fees in your item totals. Balance your account regularly.
  • Additional services to help you better manage your account: online banking and e.Statements, a mobile banking app for iPhone and Android users, e.Alerts via email or text that will notify you when your balance reaches an amount determined by you, and educational resources on our website.
  • We also offer overdraft alternatives, such as linking to a savings account, or a line of credit. See below for more details.
How and when are transactions deducted from my account?

The day's transactions are processed at night. We will post deposits and other credits to your account before checks/debits/withdrawals. See our most recent Deposit Account Agreement for our posting order.

What is a memo-post (or sometimes called "pending") transaction?

When you use your debit card to make a purchase or an ATM withdrawal, the merchant/ATM owner may request an authorization from us. If approved, we reduce your Current Balance by the authorized amount through a memo posted debit to your account. In some cases, the authorization request amount may not match the actual final transaction amount. For example, a restaurant may add an amount to the bill for an expected gratuity which may or may not be reflected in the final settlement.

Generally, this memo posted debit remains on your account until we receive a final settlement request (instructions from the merchant for us to deduct the exact amount of your final purchase from your account) or the expiration of 3 business days, whichever occurs first.

Exception: If you use your PIN when you pay for gas at the pump, the merchant must send us the final settlement request within two (2) hours.

A "final settlement" request follows after the debit card authorization request and completes the transaction. While the majority of transactions settle within one or two business days, the actual timing rests with the merchant. Even if the final settlement is not received within the three business days and the memo posted debit authorization is removed and the balance restored, the final settlement could still be received beyond the three business days and result in a balance reduction for the final transaction settlement amount.

What happens if my account remains overdrawn?
  • We may decide to no longer pay items, which means that items will be returned. Fees associated with those returned items will be charged.
  • It may lead to suspension of your account, and may damage your credit.
What is Overdraft Protection Transfer?
  • When your account becomes overdrawn, the bank will transfer funds from your linked account in $100.00 increments sufficient to cover the items, as long as the funds are available.
  • Overdraft protection transfers are free. Any account receiving overdraft protection transfers will be charged no fee, regardless of the number of items causing the overdraft.
  • If the balance in the linked account is not sufcient to cover the items, all available funds will be transferred, but you will be charged overdraft or returned items fees for any remaining items that cannot be covered by the transfer.
  • Certain accounts have transaction limitations. Please speak to a representative about options to best suit your needs.
What is Ready Cash Reserve?
  • It is a line of credit that is attached to any Checking or Money Market account. Subject to credit approval, lines are available from minimum of $300 up to a maximum of $3,000, with an APR of 15.9%.
  • Interest is only charged for the number of days with an outstanding balance on this line of credit.
  • The minimum monthly payment is 5% of the outstanding balance or $25.00, whichever is greater; and payments are automatically deducted from your checking account.
  • Additional or larger payments can be made at any time through online banking or by contacting us.
  • Advances are in $100.00 increments and are transferred automatically into your checking account to cover a negative balance. Advances can also be done manually through online banking or upon request.
  • There are no fees per transfer.