If your balance runs short
First American Bank offers several ways to help your payments go through when your available account balance falls short. Every checking and money market account comes with built-in Overdraft Privilege coverage, and you can also add a linked account or a line of credit. Here's how each one works.
| Service | How It Works | Cost |
|---|---|---|
| Overdraft Privilege (built-in coverage) | An overdraft limit is assigned to your account and may be used, at our discretion, to help cover all types of transactions when you're short1 | $39.50 per overdraft over $10; max 6/day; $5/day fee starting 3 business days after account is overdrawn |
| Account Link | Automatically transfers from another First American Bank checking, savings, or money market account to cover the shortage | $10 per transfer2 |
| CheckCredit | A pre-approved line of credit used to cover overdrafts, advanced in increments of $100 up to your limit | $35/year; 19.9% APR |
| RediReserve | A $500 pre-approved line of credit designed for customers who may not qualify for CheckCredit | $15/month; 21.9% APR |
Overdraft Privilege
Every First American Bank checking, and money market account includes Overdraft Privilege. This is a dynamic limit that is based on your account history and activity that we may use to cover an overdraft on your account1. Because Overdraft Privilege is discretionary, your available limit can change daily and may be $0 on some days. Checks, automatic (ACH) payments, and recurring debit card charges can be covered up to your available limit with no action needed.
- ATM and everyday debit card purchases, such as groceries, gasoline, or dining out, are covered ONLY IF YOU OPT IN. To opt in, call Bank by Phone at (833) 716-5600 or visit a branch. You can revoke it anytime the same way. If you don't opt in, these transactions are simply declined when there are insufficient funds, with no overdraft fee.
- Coverage is discretionary and not guaranteed. Overdraft Privilege is not a loan but a courtesy that may be extended depending on account history to help you avoid embarrassment and merchant fees. If your account becomes overdrawn, you are responsible for promptly bringing it back to a positive balance. Future deposits will first be applied to what you owe.
- If you prefer no overdraft coverage at all, you can opt out of Overdraft Privilege entirely by contacting us. Without overdraft coverage, transactions submitted when your account has insufficient funds may be declined or returned unpaid, and a Non-Sufficient Funds (NSF) fee may apply to each returned transaction.
A quick example
Say your available balance is $100; you have an Overdraft Privilege limit, and you have not opted in for debit card purchases. On the same day:
- A $150 debit card purchase at a store is declined because you're not opted in to coverage on everyday debit card purchases.
- A $900 mortgage payment by ACH is paid using your Overdraft Privilege limit, and a $39.50 overdraft fee is applied.
- A $20 recurring subscription charge is paid because recurring debit card transactions are covered, and another $39.50 fee is applied.
- A $50 check is paid if Overdraft Privilege limit remains and an overdraft fee is applied.
Bottom line: the debit card purchases you didn't opt in to are declined, while checks, ACH payments, and recurring charges are paid up to your limit with each paid overdraft adding a $39.50 fee.
Overdraft and NSF fees
With Overdraft Privilege, there is no overdraft fee when a paid item overdraws your account by $10 or less.
| Fee | Amount |
|---|---|
| Paid overdraft item (check, in-person, ATM, or electronic) | $39.50 each, when the overdraft is more than $10 |
| Returned item (NSF) | $39.50 per item |
| Continuous overdraft fee | $5 per day, after 3 business days |
| Daily maximum on paid-overdraft fees | 6 per day |
Set up protection in advance
Prefer to plan ahead? Link another account or open a line of credit, often a lower-cost option. All are available at your local Illinois, Wisconsin, or Florida branch.
- Account Link: If you overdraw your account, funds automatically transfer in $1 increments from another First American Bank checking, savings, or money market account, with a $10 fee per transfer2.
- CheckCredit: A pre-approved line of credit that advances funds in $100 increments up to your approved limit. Repay anytime, or 5% of the balance (minimum $50) is deducted on your statement date. $35 annual fee; 19.9% APR.
- RediReserve: A $500 pre-approved line of credit for customers who may not qualify for CheckCredit. Any amount is automatically repaid from your next deposit. $15 monthly fee; 21.9% APR.
Tools to help you avoid overdrafts
- Online and Mobile Banking: Check balances and transfer funds 24/7.
- Account Alerts: Get notified when your balance reaches a limit you set.
- Bank by Phone: Call (833) 716-5600 to check balances and verify transactions.
Información divulgada
1 - We determine whether you have enough money in your account for the purpose of assessing overdraft fees based on your available balance. Please see section titled “Determining your available balance” of the Rules and Regulations Governing First American Bank Deposits Accounts for details.
2 - Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. This can change daily. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. We reserve the right to require you to pay an overdraft immediately or on demand. Under our standard overdraft practices: 1) We will charge you a fee of up to $39.50 each time we pay an overdraft, whether created by check, in-person withdrawal, ATM withdrawal, or other electronic means. If we do not pay an overdraft and return the item, we will charge the account a $39.50 fee per returned item. 2) If your account continues to be overdrawn, we will charge an additional fee of $5 per day starting three business days after the account is first overdrawn. 3) The maximum number of fees assessed on paid overdraft items are limited to 6 per day, and 4) if you have chosen Overdraft Privilege, we will not charge an overdraft fee each time we pay an overdraft that overdraws your account by less than $10.
RediReserve and CheckCredit are subject to credit approval.
