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We've Got You Covered

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 costly, inconvenient and potentially embarrassing. At F&M Bank, we do not encourage overdrafts. 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 Overdraft Privilege, for F&M Bank customers. 


What is Overdraft Privilege?

It’s a discretionary service, requiring no action on your part, that provides a safety net up to an automatically assigned overdraft limit. Overdraft Privilege limits may be available for checks and other transactions made using your checking account number, as well as automatic bill payment or recurring debit card payment. At your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.


How does Overdraft Privilege work? 

We aren’t obligated to pay any item presented for payment if your account doesn’t contain sufficient funds; however, as long as you maintain your account in good standing, we may approve overdraft items within your current available Overdraft Privilege limit as a courtesy.

To be in “good standing” means that 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, which suggests the use of Overdraft Privilege as a continuing line of credit; (3) have no legal orders, levies or liens against your account; and (4) aren’t delinquent on any loan obligation to F&M Bank.

Please note that the amount of the overdraft, plus our paid overdraft item fee of $35 for each item, will be deducted from your overdraft limit. If the item is returned, the return item fee of $35 will be deducted from your account. No interest will be charged on the overdraft balance.

The Overdraft Privilege Customer Overdraft Policy under "Important Links" on this page offers additional details. 


What is my Overdraft Privilege limit? 

Locate your account type on the Compare Checking page, and you’ll see the corresponding limit beside it. For accounts not listed, please contact an F&M Bank team member. 


If I have two checking accounts, can I get Overdraft Privilege on both? 

If you have multiple household or business accounts, you may be allocated a limit on all eligible accounts.


What if I go beyond my Overdraft Privilege limit? 

Overdrafts above and beyond your established limit may result in checks or other items being returned to the payee. The return item fee of $35 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. 


How quickly must I repay my Overdraft Privilege? 

You must bring your accounts positive end-of-day balance within 30 calendar days, but we encourage you to do so earlier—as soon as possible, in fact. If you can’t meet the deadline, you’ll receive a letter from F&M Bank saying 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.


How do I know when I use the overdraft limit? 

You’ll receive an overdraft notice that includes fees each time items are paid. Remember to subtract the total fees when balancing your checkbook. 


What does my Overdraft Privilege cost? 

There’s no additional cost associated with this privilege unless you use it. You’ll be charged our paid overdraft item fee of $35 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. If you’ve requested it, 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 $105 in paid overdraft item fees. To help you manage your account, the total fees you’ve paid for items (both paid and returned) during the current month and year to date will be reflected on your monthly checking statement. 


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

You’ll find those answers in this helpful guide: 

Ways to Access Overdraft Privilege Limits


How soon can I use my Overdraft Privilege? 

It takes at least 30 days after an account is opened before your overdraft privilege service is ready. In the meantime, you must maintain satisfactory activity in the account, including regular deposits, consistent with our internal standards for new account types that may offer Overdraft Privilege. Once you’re notified that your Overdraft Privilege limit is available, you may continue to enjoy the service, provided you maintain the account in “good standing” as defined on this page. 


What if I do not want to have Overdraft Privilege on my checking account? 

If you want this service removed from your account at any time, please contact any branch .


What if I’m having trouble repaying my Overdraft Privilege or use it frequently? 

Please contact us if you: (1) don’t believe you’ll be able to bring your account to a positive end-of-day balance within the required time period; (2) find you’re 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’ll be in touch if you have 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. If you ask us to stop contacting you because you’ve determined Overdraft Privilege is appropriate for your needs, we’ll honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time after that, we may contact you again to ensure Overdraft Privilege is still best for covering your short-term credit needs.


The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register. We also strongly encourage you to reconcile your check book regularly and manage your finances responsibly. However, if a mistake occurs, F&M Bank offers additional ways* to cover overdrafts in addition to Overdraft Privilege such as a link to your savings account or a line of credit

For more information on overdraft rules and fees, as well as personal financial management, refer to the resources in the Important Links section on this page.


*Note: There may be fees associated with additional ways to cover overdrafts as well as subject to credit approval. Contact an F&M team member for more information.