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
First, good account management is always the best, most cost-effective way to prevent returned item fees and overdrafts.
How does it work?
Good account management simply involves not knowing and not going over the amount in your account so an overdraft doesn’t occur. To do this, you can:
- Regularly check your account balance and account activity using Digital Banking on your desktop, smartphone or tablet or one of the other tools discussed in “Avoiding Overdrafts”.
- If you made any deposits recently, please remember deposits are subject to verification and not 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 common 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 this service.
- If the balance in the linked account is not sufficient to cover the items, 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
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
- Minimum monthly payment is $25 or 5% of the outstanding balance, whichever is greater
- Automatic payments 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.
Ways to Avoid / Cover Overdrafts at Armed Forces Bank
Examples of Associated Fees2
|Good Account Management||$0||Not Applicable|
|Ready Cash Reserve4||15.9% APR5||$0.22|
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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.