Security Center Alerts
What You Need to Know About Overdrafts And Overdraft Fees
When you do not have sufficient funds based on your available balance to cover a transaction, and your bank pays it regardless, it is commonly referred to as an overdraft. Salem Five covers overdrafts in two different ways:
- Standard overdraft practices that come with your account.
- Overdraft protection plans, such as a link to a savings account or line of credit, which may be less expensive. To learn more, ask us about these plans.
What are standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions (fees apply):
- Checks and other transactions made using your checking account number
- Automatic bill payments
- Recurring debit card transactions
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:
- ATM transactions
- Everyday debit card transactions
We pay overdrafts at our discretion, which means it does not guarantee that we will always authorize and pay transactions.
Many accounts include a courtesy overdraft limit that may increase or decrease depending on account activity. This feature generally becomes available after 30 days.
If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if Salem Five pays my overdraft?
Under our standard overdraft practices:
- A fee of $35.00 ($5.00 for 18/65 accounts) applies each time an overdraft is paid (up to 5 fees per day). No fee is charged when items are declined, but third parties may charge fees. Transactions overdrawn by $5.00 or less will not be charged.
What if I want Salem Five to authorize overdrafts on ATM and everyday debit card transactions?
You can opt in using one of the following methods:
- Visit a Salem Five location and speak with a representative
- Call (800) 850-5000
If you would like information about overdraft protection plans, please visit one of our branch locations or call (800) 850-5000.