Bounce Protection and Overdrafts
Overdrafts and Overdraft Fees | Bounce Protection Limits | How to Opt-In for ATM and Debit Card Transactions
At times, unanticipated expenses or unforeseen problems can leave you with too little funds in your checking account. Having a check returned or a debit card transaction denied due to insufficient funds can be a costly, inconvenient, and potentially embarrassing experience. In addition, there could be merchant fees and possible damage to your credit history if a check is returned for insufficient funds.
That’s why First Federal provides Bounce ProtectionSM, a special overdraft service for checking customers. We do not encourage overdrafts. As always, we encourage you to manage your finances responsibly, but understand that unexpected expenses and human error might occur. In addition, there is absolutely no cost for this service if you do not use it.
What You Need to Know About Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction.
We may authorize and pay overdrafts, using the Bounce Protection service, for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We can cover your overdrafts in two different ways:
- We have standard overdraft practices, called Bounce Protection, that come with your account.
- We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.
First Federal will charge an insufficient funds (NSF) fee of up to $27.00 each time you have an overdraft, whether or not the overdraft is paid. There is no limit on the total fees we can charge you for overdrawing your account.
We will not authorize and pay overdrafts for the following types of transactions unless you ask us to (or Opt-In; see below):
- ATM transactions
- Everyday debit card transactions
If you choose to Opt-Out, any ATM or debit card purchase that exceeds your account balance will be declined and you will not be charged the NSF fee. If you Opt-In and authorize First Federal to pay overdrafts, Bounce Protection may allow your ATM or debit card transactions to be paid and you will be charged the NSF fee.
Bounce Protection limits by account type:
| • | Advantage Checking | ……… | $500 |
| • | eAdvantage Checking | ……… | $500 |
| • | Totally Free Checking | ……… | $500 |
| • | VIP Free Interest Checking | ……… | $500 |
| • | 50+ Free Checking | ……… | $500 |
| • | Premium Checking | ……… | $500 |
Please note that your Bounce Protection limit will be included in your available balance provided by Online Banking and VoiceLine 24®.
If you maintain your account in good standing (defined as making regular deposits and bringing your account to a positive balance at least once every 30 days) and there are no legal orders outstanding, we may approve overdrafts within your current available Bounce Protection limit as a non-contractual courtesy. First Federal is not obligated to pay any item if your account does not contain sufficient funds. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined and check(s) may be returned to the payee.
If the Bounce Protection limit is used, you will be charged the insufficient funds (NSF) fee of $27.00 per transaction and your account must be brought to a positive balance within 30 days. NSF fees will apply to overdrafts created by check, in-person withdrawal, ACH draft, preauthorized withdrawal, or other electronic means. If you affirmatively elect to Opt-In to our Bounce Protection overdraft service for ATM and one-time debit card transactions, then NSF fees will also be assessed when using this limit.
Overdrafts above and beyond your established Bounce Protection limit may result in a check(s) being returned to the payee with the standard $27.00 NSF fee assessed. Overdrafts by ATM or one-time debit card transactions in excess of the predetermined limits are normally denied regardless of the Opt-In decision, and will not be charged an NSF fee.