An overdraft occurs when there are not enough available funds in a checking account to cover a debit that is trying to clear. A $32 non-sufficient funds (NSF) fee is charged for each debit that does not clear. A great solution to avoid the cost, hassle and embarrassment is with an overdraft protection transfer. A customer’s checking account can be protected against overdraft by linking a savings or other demand deposit account (donor account) to the checking account. In the event there are not enough funds in the checking account to cover a debit that is trying to clear, a transfer will take place from the donor account to the checking. Once the transfer has been made, the debit is cleared from the checking account leaving the balance at 0. This will occur each day the checking account balance is not adequate for debits attempting to clear. A $5 fee is taken from the donor account.
No transfer will occur if the funds are also not available in the donor account. In this instance, the debit will reject as NSF, generating the $32 fee.
Please talk to one of our new accounts representatives to help you with establishing your overdraft protection account and to get further details.