Guardian Overdraft Privilege

Guardian Overdraft Privilege (pdf)

Have you ever made an error in your checkbook or inadvertently written a check that you didn’t have sufficient funds to cover?

If you answered yes, then you are not unlike most people and you should know about our Overdraft Privilege service. You could save yourself some inconvenience and embarrassment if you qualify.

What is Overdraft Privilege and how can it benefit me?
Because we understand that everyone makes mistakes, we have developed an Overdraft Privilege service that can be added to your checking account to help you flexibly manage your finances. If you qualify for this service, we will no longer automatically return your insufficient funds checks and other insufficient funds items to the merchants, creditors, or individuals to whom you wrote them. Instead, we will consider paying your overdrafts on a reasonable basis up to a pre-established limit. If these items are not returned, we can spare you the inconvenience, embarrassment, and added expense of merchant returned check charges.

How do I qualify
In order to qualify, you merely have to have average total deposits of at least $800.00 per month during the 60-day period preceding your request for this service. You must also be in good standing with any loans you have with Bank of New Madrid, and you must not have any legal orders outstanding against your checking account, such as garnishments or levies. It’s that easy.

For new accounts, you may request the Overdraft Privilege when you open the account and it will be automatically added as a service to you after 60 days have expired if you meet the qualification guidelines.

If you decide that you do not want Overdraft Privilege, notify us anytime and we will delete this service from your account.

What is my limit
Initially, your checking account will be assigned a $300.00 aggregate limitation once you have qualified for Overdraft Privilege. After you have had Overdraft Privilege for a period of 90-days, your assigned limit will automatically increase to $500.00 if your average deposits to the account totaled at least $1,000.00 per month within the first 90-days of activation.

For qualified business checking accounts, the initial aggregate limitation shall be $300.00 if the total deposits to the account average at least $1,000.00 per month during the 90-day qualification period. The aggregate limit for business accounts will automatically increase to $500.00 after the first 90-days if total deposits to the account average at least $2,000.00 per month; $750.00 after the first 90-days if total deposits to the account average at least $3,000.00 per month; or $1,000.00 after the first 90-days if total deposits to the account average at least $4,000.00 per month.

Once your limit has been evaluated and assigned after the first 90-days of using Overdraft Privilege, it will generally not be changed again or reevaluated unless you do not comply with the terms of the service.

Is this a service that only applies to checks that I have written?
Overdraft Privilege will not only be available to pay your insufficient checks, but it will also be available via recurring debit card transactions, preauthorized automatic debits, telephone-initiated transactions, and transactions conducted at a teller window.

What does this service cost me?
If we pay your insufficient funds items, the usual overdraft fee as it appears in our fee schedule ($25.00) will be charged for each item paid in excess of your current account balance. Multiple overdraft fees will be charged if more than one insufficient funds item is paid on any business day. An overdraft fee will be imposed not only for overdrafts created by checks, but also in-person withdrawals, or by electronic means, as applicable. A notice will be mailed to you each time an overdraft occurs.

Do the overdraft charges count against my limit?
Yes. If you access your Overdraft Privilege limit, any charges assessed for payment of the overdrafts will be deducted from your total limit to determine the remaining Overdraft Privilege balance available to you. If your insufficient items and charges should exceed your pre-established limit, items in excess of your limit will be returned and an insufficient funds fee ($25.00) will apply. For information relating to the payment order of items presented on your account, please refer to our fee schedule as payment order may affect the total amount of overdraft fees you incur.

If you pay my overdraft, how long do I have to pay it back?
Within 30 days of your initial overdraft, you must pay the overdraft and related charges in full and bring your account back into a positive balance for at least one business day.

Other things you should know.
Overdraft Privilege is not a line of credit and we do not recommend financing routine expenses with Overdraft Privilege. Instead, we recommend that it be used as a tool to help manage and protect your finances. Reliance on Overdraft Privilege to finance routine expenses may result in excessive overdraft fees and could ultimately lead to suspension of your Overdraft Privilege if we detect your abuse of this service.

Please note that if you are granted Overdraft Privilege, Bank of New Madrid is under no obligation to pay your insufficient items and we reserve the right to return them unpaid at any time in our sole discretion.

You should be aware that balances displayed on ATMs and our internet banking website may not include your Overdraft Privilege limit UNLESS two balances appear prominently and separately.

If Overdraft Privilege isn’t for you, then consider our Sweep arrangement as an alternative solution. With Sweep, your insufficient funds items may be paid via preauthorized transfer of funds from another account with sufficient funds. Each time an overdraft occurs in your account, the funds necessary to cover the total insufficient funds transactions for the business day are transferred from your other designated account. Sweep service is free to customers that qualify.

If you are interested in Guardian Overdraft Privilege or a Sweep arrangement, Call Today.

Bank of New Madrid 573-748-5551 or 1-800-530-5515 toll free