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Overdraft Alternatives

For more information or to speak with a Financial Education Specialist, please contact us at

We offer a few different plans to help with overdraft protection, such as a link to a savings account or an overdraft line of credit, which may be less expensive than our standard overdraft practices.

Option 1: Good Account Management

Good account management is always the best, most cost-effective way to prevent returned item fees and overdraft fees.

How does it work?
Good account management simply involves knowing your current balance. To avoid an overdraft, your spending should never exceed the available balance in your account:

  • Regularly check your account balance and account activity using Digital Banking (online or mobile; mobile carrier fees may apply), at one of our branches or using your physical account register.
  • If you made any deposits recently that includes checks, always keep in mind that deposits are subject to verification and may not be available for immediate withdrawal.
  • Remember to consider any pending items such as pre-authorized ACH debits not yet posted to your account or checks you've written that have not reached the bank yet.

Option 2: Overdraft Protection Transfers

Linking your checking account to a secondary checking, savings, or money market account is another convenient way to protect yourself from overdrawing.

How does it work?

When a debit or check transaction presents against your account in an amount that would cause an overdraft or returned item, we transfer funds from your linked account in $100 increments sufficient to cover the items (subject to funds availability in the linked account). You should also know:

  • Only one account may be linked to each checking account for Overdraft Protection Transfers.
  • Suppose the balance in the linked account is insufficient to cover the items. In that case, all available funds will be transferred, and you will be charged overdraft fees or returned item fees, as applicable, for any remaining items that cannot be covered by the transfer.
  • Linking a secondary checking account for overdraft protection transfers could result in overdrafts or returned items in the secondary account.
  • Certain account types have transaction limitations. Please talk with a bank representative to determine whether transaction limitations apply.

Option 3: Ready Cash Reserve

Linking your checking account to a secondary checking, savings, or money market account is another convenient way to protect yourself from overdrawing.

A Ready Cash Reserve line of credit can also help protect your checking account from accidental overdrafts and returned item fees.

How does it work?

Any time your balance falls below zero, we automatically transfer funds from your Ready Cash Reserve line of credit to your checking account to cover the negative balance. More important information to know about this product includes:

  • Credit line limit of $300 to $3,000¹
  • 15.9% APR
  • Interest is charged only for the number of days outstanding
  • No per transfer fee
  • The minimum monthly payment is $25 or 5% of the outstanding balance, whichever is greater
  • Automatic payments are deducted from your checking account
  • Additional or larger payments may be made at any time through Digital Banking or by contacting us
  • Advances are made in $100 increments
  • While advances happen automatically, you can also make one manually through Digital Banking or by contacting us in-store or via digital chat.

Comparative Costs

Ways to Avoid/Cover Overdrafts at Armed Forces Bank Examples of Associated Fees² Comparative Costs³
Good Account Management $0 Not Applicable
Ready Cash Reserve4 15.9% APR5 $0.22
Overdraft Fee $206 $20
Returned Item $0 $0

Sign Up, Apply, and Learn More

To sign up, apply or learn more about these overdraft alternatives log in to Digital Banking and send us a message. You may also call or visit your nearest branch.


1 Subject to credit approval
2 These costs are provided only as examples. Please ask us about specific products and fees.
3 Comparative cost based on one (1) insufficient item per month resulting in an overdraft of $50.00, and the credit line or overdraft not being paid for 10 calendar days.
4 Available to clients with approved credit for $20 annual fee.
5 Rate subject to change.
6 Refer to What You Need to Know about Overdrafts and Overdraft Fees disclosure and your Deposit Account Agreement for additional information.