Overdraft Protection

WHAT IS OVERDRAFT PROTECTION?

Overdraft Protection is your safety net for unanticipated times when there is not enough cash in your checking account. Having a check returned, scheduled online payment (such as your mortgage or car payment) not go through, or an ATM transaction rejected due to insufficient funds can be a costly, inconvenient and frustrating experience. Overdraft Protection gives you the peace of mind to know that you have a back-up in place.


OVERDRAFT PROTECTION OPTIONS

Create the Overdraft Protection plan that's right for you:

  • Set up an Online Banking low-balance email alert when your funds reach a specified point
  • Schedule an automatic account transfer from another checking or savings for the end of each month when funds tend to be tight
  • Set up a transfer from savings to cover overdraft items (see below)
  • Use our Overdraft Privilege Program for times when you need it most
  • Opt-in for debit card Overdraft Privilege Program

Please note that Belgrade State Bank offers the Overdraft Privilege Program at its discretion and is not obligated to pay any item presented for payment if your account does not contain sufficient funds.


OVERDRAFT PROTECTION – TRANSFER FROM SAVINGS

If there is not enough money in your checking account to clear the checks you've written, we can first check your savings account. If the money is available, we will transfer the funds needed to your checking account. This is a great option but it requires you to keep extra money in your savings for emergencies and it's not free. A transfer fee is charged each time.


OVERDRAFT PROTECTION – CHECKS & ACH

Our Overdraft Privilege Program is assistance in the case that there are not enough funds to cover a check, recurring debit transaction or ACH debit pulled from your account. For qualifying accounts, Belgrade State Bank will make sure that transaction clears so that you aren't charged a bounced check fee from the merchant.


OVERDRAFT PROTECTION – DEBIT CARDS

Due to regulatory changes made by the Federal Reserve to Regulation E or "Reg E," Belgrade State Bank will not be able to cover overdrafts on everyday debit card transactions unless you request the protection. Everyday transactions include one-time purchases made using your Belgrade State Bank debit card at merchants such as gas stations, grocery stores, restaurants, online and by phone.


Save yourself the hassle and embarrassment of having your debit card declined and opt-in (link to opt-in form) the Overdraft Privilege Program for your debit card. There is no charge for signing up for this service. If you need to take advantage of this service and Belgrade State Bank covers an overdrawn transaction then our standard overdraft fee of $27.50 will be assessed. You can opt-out at any time and are never charged unless you use it. Opt-in for the Overdraft Privilege Program and have peace of mind in knowing it is there when you need it and only if you need it.


How do I Opt-in?

You have 4 options:

1. Fill out the electronic form to Opt-in online

2. Print out and mail in to Opt-in by paper

3. Call your local branch to Opt-in over the phone

4. Stop by any branch and Opt-in in person


Questions? View answers to frequently asked questions about overdrafts and our Overdraft Privilege Program. If you'd prefer to discuss your options with someone, visit us in person or give us a call.


Frequently Asked Questions - Overdraft Protection


What is an everyday debit card transaction?

Everyday transactions include one-time purchases made using your personal VISA® Debit Card at grocery stores, restaurants, gas stations, and other merchants. This also includes one-time purchases, payments made online, by phone or an ATM withdrawal.


Why should I opt-in to authorize Belgrade State Bank to pay overdrafts on my behalf for everyday debit card transactions?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we will pay it anyway. If you don't have enough money to make a purchase or pay for an unexpected emergency, your consent allows us to consider authorizing and paying the transaction using our discretionary Overdraft Privilege Program.


If I have overdraft protection linked to another Belgrade State Bank account, do I still need this service?

Absolutely! If there isn't enough money in the designated account to cover the purchase, the transaction will be denied unless you authorize us by opting-in.


If I opt-in, will I automatically qualify for the Overdraft Privilege Program?

Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts.


What will happen with automatic debit card payments I setup with a merchant?

That is dependent on how the merchant submits the item. If the merchant submits the item as a recurring payment and funds are not available, the item will qualify for payment if you opted in. If the merchant does not submit the item as a recurring payment and you opted out of overdraft protection, the item will not be paid and the transaction will be declined.


If I am charged an overdraft fee, how long do I have to pay?

You have 30 days to pay for incurred overdraft charges.


If I don't opt-in to the debit card Overdraft Privilege Program, what will be paid?

Checks, recurring debit card transactions (bill payments) and ACH items will still qualify unless you elected to "opt-out" of all Overdraft Protection options.


Regulation E only applies to one-time purchases made using your Visa Debit Card.