Overdraft Protection

Overdraft Protection provides you insurance against inadvertent overdrafts in your account, or gives you a reserve of money for emergency or unexpected situations.

Here is how Overdraft Protection works for you. When you need more money than you have in your account, Overdraft Protection will allow you to withdraw funds, or write a check for more money than is in your account. You would need to be sure the withdrawal or check plus the $16.00 fee for each item that overdraws your account is less than the amount of Overdraft Protection.

For example, suppose you have NO Overdraft Protection and only $50 in your checking account. If you write a check for $100 in store XYZ, the store will submit your check to the bank for payment. When the check is received, a bank representative will look at your account and notice that you have written a check for $50 more than you have in your account. The bank will charge your account an insufficient funds processing fee (currently $16.00) and may then return the check to the store due to insufficient funds.

Upon receiving the returned check, store XYZ will require you to redeem the check and will probably charge you another fee (usually around $20). If you are active duty military, store XYZ can also report you to your chain of command. Writing a check that was never paid has now cost you $36.00 ($16.00 at the bank and $20 at the store).

Click here to see an example of how Overdraft Protection affects your ATM receipt and check register balances.

Click here to see the Overdraft Protection Terms & Conditions.