As a benefit to our clients, we offer a useful feature on some of our checking account products – an Overdraft Privilege. With this Overdraft Privilege, we pay your non-sufficient-funds (NSF) checks, recurring debits, automated clearinghouse transactions, ATM withdrawals, one-time debit card purchases, in-person transactions, other electronic debits, and overdraft fees up to a pre-approved limit.
This feature will save you time, and the additional fees charged by many other companies. Unless you expressly opt in to expanded coverage for the Overdraft Privilege, one-time debit card purchases and ATM withdrawals will not be covered. We encourage you to keep careful records and practice good account management. This will help to avoid initiating items without sufficient funds and incurring the resulting fees.
Frequently Asked Questions Regarding Overdraft Privilege:
What Banking Regulations Affect Overdrafts On Checking Accounts?
Over the past several years, Bank Regulators have made changes to protect consumers from unexpected bank charges. The changes were created so that banking clients can allow or not allow banks to authorize their ATM and everyday debit card transactions if their account has insufficient funds, and charge a fee for this service.
What Is An Everyday, One-Time Debit Card Transaction?
An everyday, one-time debit card transaction is a non-recurring purchase or payment made with a debit card and/or mobile device. Examples of this include purchasing gas, groceries, or other everyday items with a debit card or mobile device.
How Can I Notify Bank of Oak Ridge That I Want To Participate In The Overdraft Privilege Process For Everyday Debit Card Transactions And ATM Withdrawals That Overdraw My Account?
If you would like Bank of Oak Ridge to authorize and pay overdrafts on ATM and everyday debit card transactions:
- Call 336.644.9944
- Download and complete the form below, and present to any branch or mail to:
Bank of Oak Ridge
P.O. Box 2
Oak Ridge, NC 27310
May I Change My Mind?
Yes. If you authorize us to provide Overdraft Privilege on your ATM and everyday debit card transactions now, you may change your mind at any time by contacting us and completing a new form. If you decline your Overdraft Privilege now, you may always reinstate it later. It is important to note that changing your consent does not require us to waive or reverse fees that were incurred prior to your new request.
How Does Overdraft Coverage Affect Payment Of Checks And Automatic Payments From Checking?
Bank of Oak Ridge will continue to consider authorizing and paying items from checks, bill payments, recurring automatic payments from your debit card (such as gym memberships or utilities that draft automatically) and other transactions made using a checking account number that overdraw your account, at our discretion.
What Fees Apply To Bank of Oak Ridge Overdraft Privilege?
There will only be a fee if your account does not have sufficient funds to cover everyday or one-time debit card transactions and ATM withdrawals. A $35 overdraft fee will apply for each item that Bank of Oak Ridge authorizes and pays when sufficient funds are not in your account at time of processing. Maximum daily overdraft fee is $175.00.
How Can I Avoid Overdraft Fees?
The best way to avoid overdraft fees is to closely monitor your account and keep accurate records of transactions. You may do this by keeping a check register and listing all deposits and withdrawals (checks, ATM and debit card transactions, bill payments and other withdrawals). Please check your available balance* before initiating an ATM withdrawal or one time debit card purchase to see if the withdrawal will create an overdraft on your account. Bank of Oak Ridge also provides a variety of free resources that are available 24/7 to help monitor spending including Online Banking, Mobile Banking, and Telephone Banking.
Does Bank of Oak Ridge Offer Additional Overdraft Protection Options?
Yes. In addition to the Bank of Oak Ridge Overdraft Privilege, a variety of overdraft protection options are available to our clients. These include linking a checking account to a savings account, Evergreen line of credit account or a home equity line of credit.
If I Have A Joint Account And I Want To Authorize Bank of Oak Ridge To Apply Overdraft Privilege For Coverage Of ATM And Everyday Debit Card Transactions, Do All Account Holders Need To Provide Authorization?
No. Only one person on the account needs to provide authorization for Bank of Oak Ridge to provide overdraft Privilege to your ATM and everyday debit card transactions.
Does This Regulation Apply To Business Accounts?
No. Currently, this regulation does not apply to business accounts.
Does Bank of Oak Ridge Always Authorize And Pay Items That Overdraw My Account?
No. Bank of Oak Ridge authorizes and pays items that overdraw a client’s account at our discretion, and we have the right to not pay any overdrawn item. Bank of Oak Ridge will authorize and pay these items based on your account history, spending patterns and other factors if authorization to provide overdraft Privilege has been provided.
*Available Balance: We use the “available balance” method to determine whether your account is overdrawn, that is, whether there is enough money in your account to pay for a transaction. Importantly, your “available” balance may not be the same as your account’s “actual” balance. This means an overdraft or a returned item/NSF transaction could occur regardless of your account’s actual balance. Your account’s actual balance (sometimes called the ledger balance) only includes transactions that have settled up to that point in time, that is, transactions (deposits and payments) that have posted to your account. The actual balance does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but which are still pending). The balance on your periodic statement is the ledger balance for your account as of the statement date. As the name implies, your available balance is calculated based on the money “available” in your account to make payments. In other words, the available balance takes transactions that have been authorized, but not yet settled, and subtracts them from the actual balance. In addition, when calculating your available balance, any “holds” placed on deposits that have not yet cleared are also subtracted from the actual balance.