| Overdraft Privilege Services |
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What is Overdraft Privilege?
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Overdraft Privilege 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 Overdraft Privilege limit may be available for checks and other transactions made using your checking account number or automatic bill payment or 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. |
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How does Overdraft Privilege work?
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We are not obligated to pay any item presented for payment if your account does not contain sufficient funds; however, as long as you maintain your account in "good standing," we may approve your overdraft items within your current available Overdraft Privilege 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 Overdraft Privilege as a continuing line of credit; (3) have no legal orders, levies or liens against your account; and (4) you are not delinquent on any loan obligation to F&M Bank.
Please note that the amount of the overdraft plus our paid overdraft item fee of $34 for each item will be deducted from your overdraft limit. If the item is returned, the return item fee of $34 will be deducted from your account. No interest will be charged on the overdraft balance.
Please refer to the customer overdraft policy below for additional details.
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What is my Overdraft Privilege limit? |
Locate your account type on the Checking Account comparison and make note of the corresponding limit. For accounts not listed on the account comparison, please contact an F&M team member.
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| If I have two checking accounts, can I get Overdraft Privilege on both? |
If you have multiple accounts for your household or business, you may have a limit on eligible accounts. |
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What if I go beyond my Overdraft Privilege limit?
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Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned to the payee. The return item fee of $34 will be charged per item and assessed to your account. An OD/NSF notice will be sent to notify you of items paid and/or returned.
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How quickly must I repay my Overdraft Privilege?
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You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from F&M Bank informing you that your Overdraft Privilege limit has been suspended and additional items will be returned. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after bringing your account to a positive end-of-day balance.
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How do I know when I use the overdraft limit?
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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.
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What does my Overdraft Privilege cost?
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There is no additional cost associated with this privilege unless you use it. You will be charged our paid overdraft item fee of $34 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 $102.00 in paid overdraft item 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.
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What are some of the ways I can access my Overdraft Privilege limit? Will my limit be reflected in the balance I receive?
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 Ways to Access Overdraft Privilege Limits |
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How soon can I use my Overdraft Privilege?
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If you are a new account holder, we will advise you 30 or more days after your account is opened that you may use the overdraft privilege service. This is provided you have maintained satisfactory activity in the account, including regular deposits, consistent with our internal standards for new account types that may offer Overdraft Privilege. Once you are notified your Overdraft Privilege limit is available to you, it may continue to be available provided you maintain the account in “good standing” as defined on this page.
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What if I do not want to have Overdraft Privilege on my checking account?
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If at anytime, you would like to have this service removed from your account, please contact the nearest branch.
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| What if I am having trouble repaying my Overdraft Privilege or use it frequently? |
Please contact us if: (1) you do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Overdraft Privilege more often than you intend; or (3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.
Following regulatory guidance, we will contact you if you are paying multiple paid overdraft item fees, (i.e. more than six fees in a rolling 12-month period), to discuss possible alternatives to Overdraft Privilege that may better meet your short term credit needs. In the event you ask us to stop contacting you because you have determined Overdraft Privilege is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Overdraft Privilege is still the most appropriate option available to you for covering your short term credit needs.
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