Overdrafts and Overdraft Fees
What You Need to Know about Overdrafts and Overdraft Fees
What Is An Overdraft?
An overdraft happens when there is not enough money in your account to cover a transaction, but we pay it anyway. We determine if there is enough money in your account to cover a transaction as follows:
- We use the "available balance" method to calculate whether your account is overdrawn. The first step is for us to determine if there is enough money in your account to pay for a transaction. It is important to remember that your "available" balance may not be the same as your account's "actual" balance. This means an overdraft or an NSF transaction could occur regardless of your account's actual balance.
- The available balance is calculated based on the money "available" in your account to make payments. The "available balance" takes transactions that have been authorized, but not yet settled, and subtracts them from the actual balance. Also, when calculating your available balance, any "holds" placed on deposits that have not yet cleared are also subtracted from the actual balance.
- Our policy is to make funds from your check deposit and mobile check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits and cash deposits will be available on the day we receive the deposit. Once the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written.
We can cover your overdrafts in two different ways:
- We have a Basic Overdraft Service that comes with your account.
- We also offer overdraft protection services, such as a link to a savings account or a line of credit, which may be less expensive than our Basic Overdraft Service. To learn more, ask us about these plans.
This Notice Explains Our Basic Overdraft Service
What is the basic overdraft service that comes 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:
- 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 Frandsen Bank & Trust pays my overdraft?
- Items $5 or less: $0
- Per item over $5: $32 Overdraft or Unavailable Funds Overdraft Fee
- Per item: $32 NSF or Unavailable Funds NSF Fee
- Daily Overdraft and NSF Fee maximum: 6 items
- Extended Overdraft Fee: $30 imposed on the 15th day of a continuously overdrawn balance
What if I want Frandsen Bank & Trust to authorize and pay overdrafts on my ATM and everyday debit card transactions?
We offer an Enhanced Overdraft Service which authorizes us to pay overdrafts on ATM and everyday debit card transactions. To authorize:
- Call your local banking office
- Complete the Election Form below and deliver or mail to your local banking office
You may revoke your election for our Enhanced Overdraft Service by completing the form below and choosing the "I do not want Frandsen Bank & Trust to authorize and pay overdrafts on my ATM and everyday debit card transactions" or by calling or visiting your local banking office. It may take up to 5 days after receipt of your revocation to process the request.
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