Overdraft Privilege
HAVE YOU EVER
- Made a mistake in your checkbook?
- Forgotten to record a deposit? A purchase? A withdrawal? A check order?
- Had to "guess" at what transactions a joint owner has made?
- Had a transaction denied or turned down at checkout?
- Had the embarrassment and expense of a returned check?
We recognize that for a variety of reasons, customers occasionally overdraw their checking accounts. Rather than automatically returning unpaid any non-sufficient funds items, Nodaway Valley Bank will consider, without obligation on our part, payment of reasonable overdrafts on certain eligible personal and business accounts under our "Overdraft Privilege" service. This discretionary courtesy is generally limited to an $800 maximum overdraft on eligible personal checking accounts and $1,500 on eligible business checking accounts. Normal overdraft fees will apply to any paid items.
If you do not use the Overdraft Privilege Service it costs you NOTHING. “Use” means that you initiate insufficient funds transactions.
Frequently Asked Questions concerning Overdraft Privilege
Q. How does Overdraft Privilege save me money if the bank charges an overdraft fee?
In addition to the returned check charge assessed by the bank, most merchants assess an even higher returned check charge, creating a potentially embarrassing situation.
Q. Is Overdraft Privilege a loan?
No. Nodaway Valley Bank can allow an overdraft on your account up to your Overdraft Privilege limit as a courtesy, which may be withdrawn at any time.
Q. How do I apply for Overdraft Privilege?
There is no application. Overdraft Privilege is a standard feature of your NVB checking account. If your new account is in good standing after 30 days (and qualifies per the bank’s Overdraft Privilege Policy), an overdraft limit may be assigned. (Overdraft Privilege is not offered on First Step Checking Accounts.)
Q. What kind of transactions are covered by Overdraft Privilege?
Overdraft Privilege applies to checks and automatic (ACH) bill payments. Federal banking Regulation “E” requires us to obtain your permission before we can honor ATM and debit card transactions which would cause an overdraft. Otherwise, ATM and debit card transactions generally will not be paid under Overdraft Privilege.
Q. How will I be informed of any overdrafts on my account?
You will receive a notice in the mail when your account becomes overdrawn.
Q. How long will I have to cover the overdraft?
You should make every effort to immediately cover an overdraft. Any deposits made to an overdrawn account will first be applied to the negative balance.
Q: Do I have to have Overdraft Privilege on my account?
No. You may opt-out of Overdraft Privilege at any time by notifying an NVB Customer Service Representative. Furthermore, under Regulation “E,” you may revoke your consent to have ATM and debit card transactions considered for payment under Overdraft Privilege without removing other items from this service. Simply inform us of your preference. There are programs available to automatically cover overdrafts such as a funds transfer from another account. Ask for details.
Overdraft Privilege can mean:
- Avoiding high charges from merchants for returned checks.
- Avoiding the embarrassment and inconvenience of dishonored checks and ACH items.
- Payments of your occasional and inadvertent overdrafts up to your assigned Overdraft Privilege Limit of $800 on eligible personal checking accounts and $1,500 on eligible business checking accounts will normally be considered. These limits include our customary overdraft fees. Our fees will be added to any outstanding overdrafts you may have and will be applied against your Overdraft Privilege Limit.
Effective August 15, 2010, without your permission, we can no longer honor ATM and debit card transactions that would cause an overdraft. Avoid the embarrassment and inconvenience of having your ATM or debit card transaction declined. Ask us to help you “opt-in” for overdraft protection. You may also call us at the local number you normally use or toll free at 877-217-4682, or go online at www.nvb.com/opt.
