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Overdraft Privilege

What is Overdraft Privilege?

Overdraft Privilege is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit.  Your Overdraft Privilege limit may be available for checks and other transactions made using your checking account number or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.

How does Overdraft Privilege work?*

We are not obligated to pay any item presented for payment if your account does not contain sufficient funds; however, as long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy. 

For overdraft privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges);
(2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; and
(3) there are no legal orders, levies or liens against your account.

Please note that the amount of the overdraft plus our OD/NSF pd item(s) chg of $25 for each paid item will be deducted from your overdraft limit. If the item is returned, the standard NSF return item(s) chg of $25 for each returned item will be deducted from your account. No interest will be charged on the overdraft balance. 

*Please refer to the customer policy for additional details.

What are some other ways I can cover overdrafts at First National Bank?

The best way to avoid overdrafts and fees is to keep track of your account balance by entering all items in your check register, reconcile your check book regularly and manage your finances responsibly. However, if a mistake occurs, First National Bank offers additional ways to cover overdrafts in addition to Overdraft Privilege.

Good Account Management.....................$0
Reserve Line of Credit...........................$25 annual fee + loan rates apply
Link to Savings Account.........................$5 transfer fee*
Overdraft Privilege...............................Overdraft/NSF paid item charge fee of $25 for each paid item

*Links to savings accounts do not reflect an available balance when using your ATM or Shazam card.

How do I know when I use the overdraft limit?

You will receive an overdraft notice in the mail each time items are paid. The notice will show the check number, amount and the OD/NSF pd item(s) chg for each paid item. You will need to subtract the total fees when balancing your checkbook.

What is my Overdraft Privilege limit?

Locate your account type below and make note of the corresponding limit. If you have multiple accounts for your household, you may have a limit on all eligible accounts.

Free Checking..........................................$300
Traditional Checking..................................$300
Premier Checking......................................$750
Premier Plus Checking................................$750
All Other Personal Accounts.........................$750

What if I go beyond my Overdraft Privilege limit?

Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned to the payee. The standard NSF return item(s) chg of $25 will be charged for each returned item and assessed to your account. An NSF notice will be sent to notify you of items paid and/or returned.

How quickly must I repay my Overdraft Privilege?

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from First National Bank informing you that your Overdraft Privilege limit has been suspended and additional items will be returned.

What does my Overdraft Privilege cost?

There is no additional cost associated with this privilege unless you use it. You will be charged our OD/NSF pd item(s) chg of $25 for each paid overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction, or a recurring debit card payment. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases.For example, three paid items in one day will result in a $75 in OD/NSF pd item(s) chg. To help you manage your account, the total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.

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 your account is in “good standing” as previously. 

Overdraft Privilege
Customer Policy

An insufficient balance can result from several events, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you; (3) the return of unpaid items deposited by you; (4) bank service charges; or (5) the deposit of items which, according to the bank’s Funds Availability Policy, are treated as not yet available or finally paid. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds.

As long as you maintain your account in “good standing” we may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy. For overdraft privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account.

In the normal course of business, we generally pay electronic transactions first and then checks in numerical order, per the bank’s policy. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order of item payment may create multiple overdraft items during a single banking day for which you will be charged our OD/NSF pd item(s) chg of $25 for each overdraft item paid.You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type. So as not to exceed your limit, please note that the amount of the overdraft plus the bank’s OD/NSF pd item(s) chg of $25 per paid item will be deducted from the overdraft limit.

We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or if based upon our review of your account management, we determine that you have too many overdrafts or are using Overdraft Privilege as a regular line of credit. You will be charged a NSF return item(s) chg of $25 for each item returned.

You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdraft including our OD/NSF pd item(s) chg or NSF return item(s) of $25 for each item (paid or returned) that you owe us shall be due and payable upon demand, but if no demand is made, no later than 30 calendar days after the creation of the overdraft. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts inclusive of fees.

Overdraft Privilege should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to keep track of your account balance by entering all items in your check register, reconcile your check book regularly, and manage your finances responsibly. If you would like to have this service removed from your account, please call the Waverly office at (319) 352-1340 or the Cedar Falls office at (319) 266-2000.

Please note that your Overdraft Privilege limit may be available for each item paid under the limit created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit. The limit will not be reflected in your balance provided by a teller or at the ATM, but may be reflected in your balance through Money Connection Online (TM) or Money Connection (TM), our 24-hour telephone banking service.

LIMITATIONS: Overdraft Privilege is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or household use. First National Bank reserves the right to limit participation to one account per household and to suspend, revoke, or discontinue this service without prior notice.

©1998, 2008 Ann Lee & Associates. All right reserved.

 

CURRENT CD RATES

APY as high as: Rate
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36 Months Raise-a-Rate** 1.00%
60 Months 1.50%
Savvy Saver 24 Month (21 years and younger) 1.00%
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