Overdraft Protection and Overdraft Privilege
Life happens! With our busy lives, it’s easy to make mistakes such as forgetting to deposit a check, make a transfer, or deduct your last debit charge from your balance. A simple error or balance miscalculation can lead to an unexpected shortage of funds. We understand that unexpected overdrafts occur from time to time. Our Overdraft Protection and Overdraft Privilege can help!
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 SENB Bank for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval. Good account management is the best way to avoid overdrafts.
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.
|Overdraft Protection Link: transfer from another deposit account you have at SENB Bank1||$15 fee per transfer|
|Overdraft Protection Line of Credit 1, 2||Subject to interest||Subject to credit approval|
|Overdraft Privilege: Standard Coverage or Extended Coverage (See chart below)||$34 Paid NSF Fee per item
$34 overdraft fee assesses on every seven calendar days overdrawn.
|Allows you to overdraw your account up to a disclosed limit to pay transactions.|
2Subject to credit approval
*Per item presented means each time an item is presented, including representment.
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Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other Protection source is exhausted. Please review the “What Else You Should Know” section on this page for other important information.
Overdraft Privilege – Transactions Covered
Standard Coverage (No action required)
Extended Coverage (Your consent required on consumer accounts)*
If you would like to select Extended Coverage for future transactions:
|ACH – Automatic Debits||√||√|
|Recurring Debit Card payments||√||√|
|Online Bill Pay items||√||√|
|Online Banking transfers||√||√|
|Teller window transactions||√||√|
|*Everyday Debit Card transactions||√|
*If you chose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege Coverage it is not necessary to request it again. Business Accounts automatically have Extended Coverage.
What Else You Should Know
- A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our Mobile Banking, Online Banking, and Telephone Banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $34 Paid NSF Fee that is charged if you overdraw your account more than $5 is the same fee amount that is charged if a check is returned as unpaid. If your consumer account is overdrawn by $5 or less, the Paid NSF Fee is $0. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Paid NSF Fee or a Returned NSF Fee of $34. 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.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Paid NSF Fee from funds that you deposit or that are deposited into your account may call us at 309-757-0700 to discontinue Overdraft Privilege.
- If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, SENB Bank (“We”/”Us”) will charge a Returned NSF Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a Returned NSF Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Returned NSF Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge a Paid NSF Fee.
- If your account balance remains overdrawn for longer than 7 Calendar Days, we will charge your account an additional Overdraft Fee of $34 for every 7 Calendar Days the account remains overdrawn, beginning with day 8.
- For consumer accounts, there is a limit of 6 Paid NSF Fees ($204) per day we will charge. We will not charge a Paid NSF Fee if a consumer account is overdrawn by $5 or less. These exceptions do not apply to business accounts.
- Our general policy is to post items throughout the day and to post credits before debits. Paper checks are presented to us in batches and are posted in check number order. ACH items are presented in batches multiple times per day and are posted in lowest to highest dollar amount. ATM and debit card transactions are processed as we receive the transactions, which may occur immediately or up to several days later. All other transactions are posted in time stamp 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 Paid NSF Fees or Returned NSF Fees 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 Deposit Account Agreement and Disclosure. 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 every day debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Paid NSF Fees for transactions that we would otherwise be required to pay without assessing a Paid NSF Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. 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 ATM and everyday debit card 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 Paid NSF 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 Deposit Account Agreement and Disclosure, 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 banking or SENB 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, a Paid NSF 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 and business checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that will be increased to $800 after 35 days in good standing for consumer accounts or to $1,500 after 60 days in good standing for business accounts.
- 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 32 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 309-757-0700 or visit a Banking Center.
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