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Overdraft Protection Policy

Overdraft Protection

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Overdraft Protection Services

First National Bank automatically enrolls most of its checking account customers into the bank's Standard Overdraft Protection service. This service allows certain overdraft transactions to go through even when there are insufficient funds in a customer's account. The Standard Overdraft Protection service covers automatic payments and checks. 

With overdraft protection, the bank is essentially providing its customers with a short-term loan and charges an overdraft fee for the service. This service is provided at the bank's discretion and is designed to prevent the embarrassment and inconvenience of declined transactions due to insufficient funds. 

First National Bank also offers an upgraded Full Overdraft Protection service that provides customers with Standard Overdraft Protection, plus the bank will pay overdrafts on ATM and everyday debit card transactions. Customers must enroll to receive this service.  

Customers also have the option of opting out of overdraft protection services. Opting out of overdraft protection services will avoid overdraft fees, but it could lead to bounced checks, declined payments or transactions, and non-sufficient funds fees. See details below on how to opt-out.

View Overdraft Protection Disclosure

Make Your Choice: Overdraft Protection Options

You have three choices when it comes to dealing with potential overdrafts. 

Continue to Receive Standard Overdraft Protection

Standard Overdraft Protection comes will most checking accounts. With Standard Overdraft Protection, the bank may authorize and pay overdrafts for checks and other transactions made using your checking account number; and will authorize automatic bill payments. Standard Overdraft Protection does not cover overdrafts on your ATM or everyday debit card transactions.

Action Required

No further action is required.

You can revoke Standard Overdraft Protection at any time by contacting the bank. 

Enroll in Full Overdraft Protection

With Full Overdraft Protection, you receive Standard Overdraft Protection, plus the bank will pay overdrafts on your ATM and everyday debit card transactions. Standard overdraft fees apply. You can revoke this authorization at any time by contacting the bank.

Action Required

To authorize Full Overdraft Protection, you must either:

Please note some transactions could still overdraw your account due to factors outside of the bank's control and standard overdraft fees could apply.

Opt-Out of Overdraft Protection

All checking accounts come with Standard Overdraft Protection. You can opt-out of Standard Overdraft Protection; however, if you do, First National Bank will not pay overdrafts on any of your transactions. Your overdraft transactions will be declined. Please note some transactions could still overdraw your account due to factors outside of the bank's control and standard overdraft fees could apply. 

Action Required

To opt-out, you must either:

Understanding Overdrafts

Select a question to reveal the answer. 

    • What is an overdraft?

    • A bank account overdraft occurs when a bank account holder's balance goes below zero, resulting in a negative balance. The most common cause of an overdraft is simply not having enough money in your account to cover your transactions. 

    • What is First National Bank's Overdraft Protection Policy?

    • Please read First National Bank's Overdraft Protection Disclosure for complete details.  

    • What is an overdraft fee?

    • An overdraft fee is a charge you incur from the bank when you spend more money than you have available in your bank account. 

      If First National Bank pays your overdraft, you may be charged an overdraft fee of up to $35 each time the bank pays an overdraft. The bank may charge you up to $140 per day for overdrawing your account. 

      For example, you have $50 in your checking account, but you had to pay $75 for an immediate expense, such as a car repair. You're short $25, but the bank's Standard Overdraft Protection covers the transaction so that the payment clears. As a result, the bank charges a $35 overdraft fee for covering the transaction. Combined, with the $35 overdraft fee and $25 you were short, your account balance is now a negative -$60. You must deposit at least $61 to bring your account back to a positive balance.  

      SEE FULL DISCLOSURE

    • What is a continuous negative balance?

    • If a customer doesn't bring their bank account back into a positive balance after over-drafting, the bank will charge interest on the loaned amount until the customer brings the account back to a positive balance. 

    • What is the best overdraft option for me?

    • Read the bank's Overdraft Protection Disclosure to understand what choices are available. You can opt out of Overdraft Protection services at any time by calling Customer Service at 515-232-5561. 

      Overdraft services are meant for occasional use. If you find yourself repeatedly overdrawing your checking account, you may want to consider using a prepaid debit card or keep a closer eye on your account balance.  

    • How can I avoid overdraft fees?

    • To avoid overdraft fees, you can: 

      • Keep track of how much money you have in your checking account by keeping your account records up-to-date. Record all checks when you write 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. 
      • Set up online/mobile banking account balance alerts when your balance drops below a certain threshold that you set. Alerts & Notifications is a free service for online and mobile banking customers. 
      • Aim to keep a cushion of money in your account to avoid accidentally sending your account negative. 
      • Opt-out of overdraft coverage at any time by calling Customer Service at 515-232-5561.

      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. Depositing money into your account can help you avoid additional overdrafts and fees. 

    • What are the eligibility requirements for Overdraft Protection?

      • Must be age 18 or older. 
      • Account must not be a trust, estate, conservatorship, Rep Payee, campaign, memorial, nonprofit, club/association/fraternity/Sorority account. 
      • Must not have been removed from an Overdraft Protection service in the past. 
      • Account requires the owner's Social Security number. 

    • Can I remove Overdraft Protection?

    • Yes, you can remove Overdraft Protection at any time. Removing Overdraft Protection may result in transactions that cause a negative balance in your account to be automatically returned or denied. 

      To remove Overdraft Protection, please call Customer Service at 515-232-5561. 

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