At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience.
At First National Bank of Northfield, we do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned.
That’s why we provide “Overdraft Privilege”, a special service for First National Bank of Northfield checking customers.
Overdraft Privilege FAQ’s
- What is Overdraft Privilege?
- How does Overdraft Privilege work?
- How do I know when I use the Overdraft Privilege?
- What if I go beyond my Overdraft Privilege limit?
- How quickly must I repay my Overdraft Privilege?
- What does my Overdraft Privilege cost?
- What are some of the ways I can access my Overdraft Privilege?
- How soon can I use my Overdraft Privilege?
- What are some other ways I can cover overdrafts at FNB?
- What if I do not want to have Overdraft Privilege on my checking account?
What is Overdraft Privilege?
Overdraft Protection is a service requiring no action on your part. You don’t have to sign anything. Your Overdraft Privilege limit amount will be automatically assigned.
How does Overdraft Privilege work?
As long as you maintain your account in good standing, First National Bank may honor overdrafts up to the Overdraft Privilege limit on your account. Whether your overdraft will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing or you are not making regular deposits, or have too many overdrafts. To ensure you don’t exceed your limit if you use Overdraft Privilege, please note that the amount of the overdraft plus our standard NSF fee of $29 for each item will be deducted from your overdraft limit. No interest will be charged on the overdraft balance.
How do I know when I use the Overdraft Privilege?
You will receive an overdraft notice in the mail each time items are paid. The notice will show the check number, amount and the NSF fee. You will need to subtract the total fees when balancing your checkbook.
What if I go beyond my Overdraft Privilege limit?
Overdrafts above and beyond your established Overdraft Privilege limit may result in a check or checks being returned to the payee. The standard NSF fee will be charged per item and assessed to your account. An NSF notice will be sent to notify you of our actions.
How quickly must I repay my Overdraft Privilege?
You should make every attempt to bring your account to a positive balance within 30 days. If you are not able to do so, you will receive a letter from FNB informing you of the situation and your options. If, after a period of time, your account has not been brought to a positive balance, we may suspend your account and take other steps to recover the funds.
What does my Overdraft Privilege cost?
There is no additional cost associated with this service unless you use it. You will be charged our standard NSF fee of $29 for each item created by check or through in-person withdrawals, ATM withdrawals or other electronic means paid under the limit. (For example, three paid items in one day will result in $87 in NSF fees.)
What are some of the ways I can access my Overdraft Privilege limit?
Your Overdraft Privilege may be accessed by writing a check, visiting a teller, using your ATM or debit card, or through ACH-Auto debit. It can also be accessed and transferred into other accounts using FirstCall or Online Banking.
How soon can I use my Overdraft Privilege?
If you are a new account holder, you may be able to use the Overdraft Privilege service 30 days after the account is opened, assuming you demonstrate responsible account management by making regular deposits to maintain your account with a positive balance, and there are no legal orders, levies or liens against your account. If you are an existing account holder, you may use your Overdraft Privilege immediately.
What are some other ways I can cover overdrafts at First National Bank?
The best way to avoid overdrafts and bounced check fees is to manage your account so you don’t overdraw it. However, if a mistake occurs, First National Bank offers additional ways to cover overdrafts in addition to Overdraft Privilege such as First Reserve and Automatic transfers from a savings account.
What if I do not want to have Overdraft Privilege on my checking account?
Overdraft Privilege costs you nothing unless you use it. However, if you would like to have this service removed from your account, please call (507) 645-5656.
