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Managing Overdraft Protection

At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience. At Peoples Bank, we do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned. That's why we provide special overdraft services for Peoples Bank customers.

Services we offer

No Bounce Advantage

No Bounce Advantage is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit.

Your No Bounce Advantage limit may be available for checks and other transactions made using your checking account number or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.

Redi-Advantage Line of Credit

Our Redi-Advantage line of credit provides overdraft protection for your checking account. Contact us for more information or to apply for Redi-Advantage line of credit.


Managing Overdraft Fees

How do overdrafts and bounced checks happen?

When you:

  • write a check,
  • withdraw money from an ATM,
  • use your debit card to make a purchase, or
  • make an automatic bill payment or other electronic payment
for more than the amount in your checking account, you overdraw your account. The bank has the choice to either pay the amount or not. If it pays even though you don’t have the money in your account, you may be charged an “overdraft” fee. If the bank returns your check without paying it, you may be charged a “bounced-check” or “nonsufficient funds” fee. And the person or company that you wrote the check to, for example, a store, your landlord, or the phone company, may charge you a “returned-check” fee in addition to the fee your bank charges you.

How can you avoid overdraft and bounced-check fees?

The best way to avoid overdraft and bounced-check fees is to manage your account so you don't overdraw it.

  • Keep track of how much money you have in your checking account by keeping your account register up-to-date. Record all checks when you write them and other transactions when you make them. And don’t forget to subtract any fees.
  • Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.
  • Don’t forget about automatic bill payments you may have set up for utilities, insurance, or loan payments.
  • Keep an eye on your account balance. Remember that some checks and automatic payments may not have cleared yet.
  • Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling the bank or by checking online or at an ATM. Be sure to find out the actual amount in your account not including any funds available to you through “courtesy overdraft-protection” or “bounce coverage” plans.
  • Enroll in online banking. It’s free and allows you to see your account balances, transfer funds and even set up email or text alerts to let you know when your balance goes below a certain amount.
Sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid additional overdrafts and fees.


No Bounce Advantage

No Bounce Advantage is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit. With this plan, you’ll still pay an overdraft fee to the bank for each item. But you will avoid the merchant’s returned-check fee and will stay in good standing with the people you do business with.

Your No Bounce Advantage limit may be available for checks and other transactions made using your checking account number or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.

What does my No Bounce Advantage cost?

There is no additional cost associated with this protection unless you use it. You will be charged a fee of $35.00 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction or a recurring debit card payment. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases. For example, three paid items in one day will result in $105.00 in fees. To help you manage your account, the total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.

What are some other ways to cover overdrafts?

The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly and manage your finances responsibly. However, if a mistake occurs, Peoples Bank offers additional ways to cover overdrafts in addition to No Bounce Advantage.

Link your checking account to a savings account you have with the bank. If you overdraw your checking account, the bank can transfer funds from your savings account to your checking account. Ask about transfer fees.

Set up an overdraft line of credit with the bank. You need to apply for a “line of credit” just as you would apply for a regular loan. If you overdraw your account, the bank will lend you the funds by using your line of credit to cover the overdraft. You will pay interest on this loan, and there may be an annual fee. But the overall costs may be less than the costs for courtesy overdraft-protection plans.

The choice is yours. Consider these ways to cover your overdrafts:

Ways to cover overdrafts at Peoples BankExample of associated fees*
Good account management$0
Link to savings account$7.00 transfer fee
Overdraft line of creditInterest rate applicable
No Bounce Advantage$35.00 fee for each item
*These costs are provided only as examples. Please ask us about our specific products and fees.

What do you need to know about No Bounce Advantage?

  • Avoid using it as a short-term loan—it is a costly form of credit.
  • If you overdraw your account, get money back into your account as soon as possible. Remember that you need to put enough money back into your account to cover both the amount of your overdraft and any bank fees.
  • Even if you have one of these plans, there is no guarantee that your bank will cover your checks, ATM withdrawals and debit card and other electronic transactions that overdraw your account.
  • Good account management is the lowest-cost way to protect your hard-earned money. If you need overdraft protection every now and then, ask us about the choices and services that are right for you.


Why opt-in to overdraft coverage for debit and ATM transactions?

Was your debit card declined?

Add No Bounce Advantage overdraft service for ATM and one-time debit card transactions.

Even if you have No Bounce Advantage overdraft coverage, you may not be covered for ATM and one-time debit transaction overdrafts. Banking regulations require that customers “opt-in” to this additional coverage before we can cover overdrafts for ATM and debit card transactions.

All you need to do is fill in the Opt-In form. (You can also do the Opt-In by calling our Customer Service Center or visiting any of our offices.)

NOTE: No Bounce is for personal accounts only. Business customers should contact us to learn about their overdraft options.

What happens if you decide to opt-in?

  • The bank will try to cover your everyday debit card and ATM transactions (up to your No Bounce Advantage limit) regardless of the funds that exist in your account (ATM daily limits also apply).
  • There's no fee to opt-in to the protection.
  • There's a $35 overdraft fee each time we pay a transaction (up to your No Bounce Advantage limit) when you have insufficient funds available. You'll incur the fees ONLY if we actually cover the overdraft for you.
  • You must keep your account in good standing. That means you make regular deposits and bring your account into a positive balance at least once every 30 days.

What happens if you decide NOT to opt-in?

The bank will not cover your everyday debit card and ATM transactions when there are insufficient funds in your account and your transaction will be declined. Purchases or payments you need to make will not be made. What you'll need to complete the authorization form:

  • A list of all the accounts you want us to authorize and pay overdrafts on your ATM and everyday debit card transactions.
  • The account number on each account
  • Your address, city state and zip
  • Your phone number(s)
  • Your email address

Read the complete disclosure and refer to the No Bounce Advantage policy in Account Disclosures for additional details.

Online opt-in is easy, fast and secure. Alternatively, you may download and print our authorization form and either mail to us or bring it in to any of our convenient locations.

Download opt-in form (157kb PDF)

Disclosure: As of the July 1, 2010 we will not authorize and pay overdrafts on ATM and everyday debit card transactions without account holder consent. An overdraft (OD) fee or insufficient funds (NSF) fee of up to $35.00 will be charged for covering overdrafts that result in a negative balance at the end of the day. Overdrafts may be created by check, ACH, online banking transactions, phone transactions or other electronic means. Recurring debit card transactions (payments that are set up to bill and pay automatically), such as an automatic draft from your health club or insurance company, may continue to be covered by your overdraft service. Once an overdraft has occurred you are required to bring your account to a positive balance within 30 days. We reserve the right not to pay if your account is not in good standing. Contact us if you have questions.

Personal accounts only.


Need help?

If you need help with overdraft fees, or have a concern about your account, Contact us at 877-802-1212. Explain the problem and how you would like to see the problem resolved. If contacting us does not produce the desired results, you can contact your banks' federal regulator for assistance at 1-877-ASK-FDIC (1-877-275-3342). For more information check out www.fdic.gov/consumers.

To learn more about smart ways to manage your money, complete the FDIC Money Smart financial education program online through www.fdic.gov/moneysmart. You can also find financial education workshops or individualized counseling in your area.