Overdraft Privilege

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 Security Federal Savings 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 Bounce Protection, a special overdraft service for Security Federal Savings Bank customers.

What is Bounce Protection?

Bounce Protection 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 Bounce Protection 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.

How do I become eligible for Bounce Protection?

You must first opt-in to the automated overdraft protection program. The following items will be taken into consideration prior to activating the coverage:

  • Frequency of deposits and ability to cover debit transactions on the account
  • Other account relationships
  • Overdraft activity 3 or fewer during a 90 day review period
  • Legal orders, liens or tax levies

How does Bounce Protection work?*

As long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Bounce Protection limit as a non-contractual courtesy.

For overdraft privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account.

Please note that the amount of the overdraft plus our paid item OD fee of $31.00 for each item will be deducted from your overdraft limit. If the item is returned, the returned item NSF fee of $31.00 will be deducted from your account. No interest will be charged on the overdraft balance.

What does my Bounce Protection cost?

There is no additional cost associated with this privilege unless you use it. You will be charged our paid item OD fee of $31.00 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 $93.00 in paid item OD 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 is my Bounce Protection limit? If I have two checking accounts, can I get Bounce Protection on both?

Locate your account type below and make note of the corresponding limit. If you have multiple accounts for your household, you may have a limit on all eligible accounts.

YOUR Way Checking…………………………….$400

What are some of the ways I can access my Bounce Protection limit? Will my limit be reflected in the balance I receive?

The chart below shows the different ways you can access your Bounce Protection limit and indicates whether or not this limit will be reflected in the balance provided.

ACCESS POINTS

IS MY BOUNCE PROTECTION AVAILABLE?

DOES THE BALANCE PROVIDED RELFECT MY BOUNCE PROTECTION LIMIT?

TELLER

NO

NO

WRITING A CHECK

YES

-NA-

DEBIT CARD (RECURRING)**

YES

-NA-

DEBIT CARD (EVERYDAY)**

YES

-NA-

ATM WITHDRAWAL

YES

NO

ACH-AUTO DEBIT

YES

-NA-

EBANKING

NO

NO

BILL PAY

NO

-NA-

SECURITY EXPRESS

NO

NO

 

** Bounce Protection service will be made available for ATM or everyday debit card transactions upon your request. Call (574)722-6261 or visit one of our branches to arrange for your ATM and debit card coverage.

How do I know when I use the overdraft limit?
You will receive an overdraft notice each time items are paid, including fees. You will need to subtract the total fees when balancing your checkbook.

What if I go beyond my Bounce Protection limit?
Overdrafts above and beyond your established Bounce Protection limit may result in checks or other items being returned to the payee. The returned item NSF fee of $31.00 will be charged per item and assessed to your account. An NSF notice will be sent to notify you of items paid and/or returned.

* Please refer to the customer overdraft policy for additional details.