Account holders with Overdraft Privilege enjoy the benefit of the bank paying or approving, at its discretion, check, ATM withdrawals and debit card purchases for you even if you have insufficient funds.
This will help you even if you always keep enough money in your account. Your payroll direct deposit may be delayed getting to the bank, a debit hold may be placed on your account or you may need to cover an unexpected expense like a car tow.
For example, when you use your card at a gas station, the transaction will be authorized before you pump the gas. At the time of authorization, the amount of the purchase is unknown but a hold will be placed on your account for an amount between $1 and $125.
Depending upon the technology used, the hold may remain on your account for an extended period. This is important because the hold amount affects the amount of funds that are available. So even if the actual purchase amount is $36 and the hold is $75, the cash available to you in your account is actually $39 less that you think. If you believe you have more funds available than you actually do, you may make another purchase and be denied as a result of the hold amount; unless you have Overdraft Privilege. It stays that way until the hold falls off.
Accounts will be charged the standard Overdraft fee of $30.00 for handling each overdraft created by check, ACH, Point-of-sale, ATM withdrawal, in-person withdrawal, or other electronic item that is paid or returned.
If your account balance remains overdrawn for longer than 5 days, the account will be charged a daily overdraft fee of $10.00 for each of the consecutive business days the account remains overdrawn, beginning on the 6th day. An overdrawn balance must be repaid within 30 days.
We may not pay items under your overdraft privilege if you do not maintain your account in good standing by;
- Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours,
- If you default on any loan or other obligation to Farmers State Bank or,
- If your account is subject to any legal or administrative order or levy