Overdraft Protection and Overdraft Privilege
First Northern Bank understands that unexpected overdrafts occur from time to time. Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
|
Service |
Cost |
|
Savings Overdraft Protection that you have at First Northern Bank1 |
$0 fee per transfer |
|
Overdraft Privilege Standard or Extended Coverage |
$26 Overdraft (OD) Fee per item presented* |
1Call us at (877) 362- 6000, send us a secure message through online banking, or come by a branch to sign up for this service.
*Per item presented means each time an item is presented, including re-presentment.
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at First Northern Bank for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review What Else You Should Know for other important information.
|
Transactions Covered with Overdraft Privilege |
Standard Coverage |
Extended Coverage (Your consent required on consumer accounts) * |
If you would like to select Extended Coverage for future transactions:
Attn: Overdraft Program P.O. Box 547 Dixon, CA 95620 |
|
Checks |
X |
X |
|
|
ACH - Automatic Debits |
X |
X |
|
|
Recurring Debit Card Transactions |
X |
X |
|
|
Online Bill Pay Items |
X |
X |
|
|
Teller Window Transactions |
X |
X |
|
|
ATM Transactions |
|
X* |
|
|
Everyday Debit Card Transactions |
|
X* |
Extended Coverage Consent Form
*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
If you want to discontinue Overdraft Privilege in its entirety, contact us at (877) 362- 6000.
- A savings overdraft protection link or reserve line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, online, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
- The $26 Overdraft (OD) Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft (OD) Fee or a Non-Sufficient Funds Returned Item (NSF) Fee of $26. Consumer and sole proprietorship accounts are not charged Non-Sufficient Funds Returned Item (NSF) Fees. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
- For consumer and sole proprietorship accounts, the maximum daily limit on Overdraft Fees is $156 or 6 Overdraft (OD) Fees per day. There is no daily fee limit on business accounts (other than sole proprietorship accounts). Also, we do not charge the $26 Overdraft (OD) Fee if: (1) on any given day after all transactions presented to your consumer checking account are paid and your account balance is overdrawn by $10 or less or (2) the amount of the transaction itself does not exceed $10 for consumer accounts or $5 for business accounts.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft (OD) Fee from funds that you deposit or that are deposited into your account may call us at (877) 362- 6000 to discontinue Overdraft Privilege.
- In the event an ACH or check is presented multiple times for payment, we will not charge an NSF Returned Item fee on the re-presented transaction if the originator (merchant or financial institution as an example) properly submits and labels the item. A re-presentment occurs when a transaction is submitted for payment, cannot be covered by the balance in the account, is returned as NSF and after being declined, the merchant subsequently resubmits the transaction for payment again. However, if the originator does not properly label the item, we may charge an NSF Returned Item fee on the transaction.
NACHA Operating Rules require the originator of an ACH transaction to properly label an ACH re-presentment as a “RETRY PYMT” or “RCK” (Re-presented Check Entry). An ACH entry must include this required information for the fee to be waived. We cannot reliably identify an ACH re-presentment without the “RETRY PYMT” or “RCK” label. Therefore, you may receive an Overdraft or NSF Returned Item fee on a re-presentment if the required information is not provided by the originator. We have no control over how originators submit their ACH re-presentments. If you believe that a re-presented ACH transaction was mislabeled and you were improperly charged an NSF Returned Item fee, you must notify the Bank within the timeframes outlined in the Deposit Account Agreement.
We identify check re-presentments based on specific criteria that includes bank number, account number, dollar amount, and serial number. The check matching process uses this specific criteria to review the past 180 days of account transaction history based on the transaction date to determine if the check being presented is a re-presentment. The check being presented must match this criteria for the fee to be waived. We have no control over the check information that is provided to us. For example, if another institution processing the check incorrectly captures the check dollar amount or serial number (encoding error), we will not identify it as a re-presentment and you may receive an NSF Returned Item fee on the re-presented check. If you believe that a re-presented check was incorrectly encoded or processed outside the 180 day review period and you were improperly charged an NSF Returned Item fee, you must notify the Bank within the timeframes outlined in the Deposit Account Agreement.
- This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. ATM and debit card transactions are posted in the order in which the items are received, ACH debits post from lowest to highest dollar amount and paper checks are posted in check number order; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft (OD) Fees or Non-Sufficient Funds Returned Item (NSF) Fee s assessed.
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.
- We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft (OD) Fees for transactions that we would otherwise be required to pay without assessing an Overdraft (OD) Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.
- We authorize and pay transactions using the Available Balance.
- Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
- Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
- The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
- The balance used for authorizing everyday debit card and ATM transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege limit.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
- Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Terms and Conditions of Your Account, which will reduce the amount in your Available Balance.
- Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through Online Banking, mobile app or First Northern Bank’s ATMs.
- We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft (OD) Fee may be assessed.
- Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding Overdraft Privilege Limits
- New consumer checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that may be increased to $500 after 30 days and in good standing. Consumer accounts opened for two years or longer with monthly aggregate deposits totaling $1,000 are eligible for an increased limit of $750.
- New sole proprietor checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that will be increased to $300 after 30 days in good standing.
- New business checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that will be increased to $1,000 after 60 days and in good standing.
- The limit for grandfathered Business Checking accounts will remain at $1,500 for accounts in good standing.
- Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 35 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.
If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (877) 362- 6000 or visit any branch.