What is an overdraft fee or nonsufficient funds (NSF) fee?

An overdraft occurs when you do not have enough money in your account to cover a transaction (“item”); however, the Bank pays it anyway. A nonsufficient funds (“NFS”) transaction is different in that you do not have enough money in your account to cover the item and the Bank will return it to the merchant or third party as unpaid. In either situation, the Bank can charge you a fee.

If the Bank pays an item into a negative balance (overdraft), we will assess an Overdraft Fee. If the Bank returns the item (NSF), we will assess a Nonsufficient Funds (NSF) Fee. These fees apply to overdrafts created by checks, in-person withdrawals, ATM withdrawals, debit card transactions or other electronic means. The Bank does not charge a fee if an item overdrawing your account results in a negative balance between $0 and $5.00. The Bank may charge you a NSF Fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is processed.

To determine if an item will be paid as an overdraft or returned NSF, the Bank uses the “available balance” method. Your available balance is calculated by subtracting any authorized or pending transactions and “holds” place on deposit from your actual balance. This means an overdraft can occur regardless of your account’s actual balance.