What is an overdraft?
An overdraft occurs when there is too little money in the account to cover expenses, resulting in checks or ACH payments being returned due to insufficient funds in the account. Unexpected expenses can cause you to overdraft your checking account. Returned payments can be inconvenient and expensive.
What is “Standard Overdraft Services”?
We always encourage you to manage your accounts responsibly, but we offer Standard Overdraft Services to protect you in the case of an overdraft. This discretionary overdraft service requires no action on your part and provides you a safety net up to an automatically assigned overdraft limit amount. Your Standard Overdraft Services may be available for checks and other transactions made using your checking account number. Also, if you opt-in for Standard Overdraft Services, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.
How does “Standard Overdraft Services” work?
If your account is in good standing, we may approve your overdraft items within your available Standard Overdraft Services limit as a non-contractual courtesy. This means we will complete the payment for the approved item and the amount of the overdraft. Our paid overdraft (NSF) item fee for each item paid will be deducted from your overdraft limit. If the item is returned, the nonsufficient funds (NSF) item fee will be deducted from your account. Individual items may be represented multiple times, at the merchants discretion, multiple nonsufficient funds (NSF) item fees may be assessed. No interest will be charged on the overdraft balance.
What if I am having trouble repaying my “Standard Overdraft Services” balance, or if I am using it frequently?
If you find that you are using Standard Overdraft Services more often than intended, if you don’t think you’ll be able to make your account balance positive, or if you don’t understand why your account becomes overdrawn, please contact us at 985-395-6131 so that we can discuss it with you. Following regulatory guidance, we will contact you if you are paying multiple overdraft fees to discuss possible alternatives to Standard Overdraft Services that may better suit your needs.
What happens if I exceed my “Standard Overdraft Services” limit?
If you have overdrafts beyond your Standard Overdraft Services limit, checks or other items may be returned to the payee. The returned item nonsufficient funds (NSF) fee will be charged per item and assessed to your account. An overdraft/non-sufficient funds (NSF) notice will be sent to notify you of items paid and/or returned.
Does “Standard Overdraft Services” cost me anything?
Unless you use your Standard Overdraft Services, there is no additional cost associated with the service. If you use your Standard Overdraft Services, you will be charged our paid item non-sufficient funds (NSF) fee for each overdrawn item. These items may be created by a traditional check, a withdrawal, an automatic payment (ACH) transaction, or a recurring debit card payment. If you opt in to Standard Overdraft Services, we may also cover ATM transfers or withdrawals and/or everyday debit card purchases. To help you manage your account, the total fees you have paid for both paid and returned items will be reflected on your monthly statement.
After I open my account, when does “Standard Overdraft Services” become available?
For new customers, we will advise at least 30 days after your account is opened that you may use Standard Overdraft Services (provided your account is in good standing and the account type is eligible). Once you receive this notification, your Standard Overdraft Services limit will be available as long as your account continues to be in good standing and you don’t exceed your Standard Overdraft Services limit.
Can I remove “Standard Overdraft Services” from my account?
Yes, If you would like to have this service removed from your account, please call us at 985-395-6131.
What are some other ways I can cover overdrafts?
The best way to avoid overdrafts and fees is to manage your funds responsibly, but we understand that mistakes happen. Other than opting in to Standard Overdraft Services, you can cover overdrafts by linking other deposit accounts to your checking account or by getting approved for a line of credit that can be linked to your checking account.