What is Overdraft Protection?
Overdraft Protection is a convenient service we offer to help protect you from overdrafts and having transactions denied for insufficient funds. Overdraft Protection is a line of credit, a loan from the bank to cover items that come into your checking account for which there are no available funds. It’s kind of like insurance if your checking account is overdrawn.
- Overdraft Protection is an optional service and requires credit approval.
- If enrolled, we will automatically transfer available funds to cover your transaction if you don’t have enough money in your checking account.
- Advances into accounts are made in $25 increments.
- A single $2 transfer fee is charged if we transfer funds to prevent a negative balance.
- Interest is charged on any outstanding balance.
How do I get Overdraft Protection?
Since the overdraft line of credit is a small loan, you must complete a credit application for approval. When approved, a certain amount of money will be available to you as an overdraft line of credit. You can apply for whatever limit you need with the approved limit depending on your credit and income.
As with any loan, you can improve your odds of being approved by having good credit or cleaning up bad credit.
To apply for Overdraft Protection, please call or visit any of our 11 convenient locations.
How does Overdraft Protection work?
The overdraft line of credit is connected to your checking account to cover transactions when there isn’t enough money in your account. If funds are advanced from the overdraft line of credit to cover overdrawn funds, you will have a certain percentage of the outstanding balance or a minimum fixed amount due each month. You can either make a payment or allow the system to automatically debit it on the due date.
Why is Overdraft Protection a good thing?
Overdraft protection provides the security of knowing that if you miscalculate your funds, you are covered, like insurance. An overdraft line of credit is generally easy to obtain, it doesn’t cost you anything, and if you don’t ever have to use it, you never have anything to pay back.