What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account. See below for details.
- We also offer overdraft protection plans, such as a link to a savings account or an overdraft line of credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.
This notice explains our standard overdraft practices.
*We determine whether you have enough money in your account for purposes of assessing overdraft or NSF fees based on your available balance. Please also see the Terms and Conditions Overdraft Addendum. It includes an example of transactions that result in overdraft fees using the available balance method.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):
- ATM transactions
- Everyday debit card transactions
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.
If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if First State Bank pays my overdrafts?
Under our standard overdraft practices:
- We will charge you a fee of up to $34 each time we pay an overdraft. The cost will be based upon the dollar amount of the item that will cause the account to be overdrawn.
We will charge you a $10 fee for each overdraft item paid that is less than or equal to $20.
We will charge you a $34 fee for each overdraft item paid that is greater than $20.
No overdraft fee will be charged if your total overdrawn balance is less than or equal to $5.
- There is also a $7.00 charge after the fifth business day, and $7.00 each business day thereafter, if the account remains overdrawn by greater than $5
- There is a limit of five overdraft fees per day that we will charge you when you overdraw your account.
What if I want First State Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, choose “Yes” below and submit.
If you do not want us to authorize and pay overdrafts on ATM and everyday debit card transactions, no response is necessary.
You have the right to revoke the opt-in at any time by notifying First State Bank.
If a check is submitted or a transaction is made for funds exceeding what is available in the account, the customer is immediately responsible for the amount of any overdraft and applicable fees. It is the obligation of the customer to keep the account in good
standing with the Bank and, should an overdraft situation occur, to bring the account to a positive balance immediately without notice or demand from the Bank.
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