What You Need to Know About Overdrafts And Overdraft Fees


When you do not have sufficient funds 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:

  1. Standard overdraft practices that come with your account.
  2. Overdraft protection plans, such as a link to a savings account or Line of Credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

 

This notice explains our standard overdraft practices.


What are standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • 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 (see below):

  • 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 any type of transaction.

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:

  • We will charge a fee of $35.00 ($5.00 fee for 18/65 accounts) each time an overdraft item is paid or returned by us based on your courtesy overdraft balance. You may be assessed additional insufficient funds (NSF) or uncollected funds fees for the same item if the sending bank or merchant requests that the item be represented for payment. NSF items paid at our discretion will be limited to five (5) fees per day.  NSF items returned unpaid will be charged an NSF Item Fee and uncollected funds will be charged an Uncollected Funds Item Fee.  As a courtesy, should a transaction overdraw your account in the amount of $5.00 or less, your account will not be charged.


What if I want Salem Five to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, you can do so by choosing one of the following options:

  1. Select the Overdraft Plan Opt-in box during Step 1 of your online account application;
  2. Speak with a representative at one of our branch locations; or
  3. Call our Contact Center at (800) 850-5000

 

If you would like information about Overdraft Protection Plans, please speak with a representative at one of our branch locations, or call us at (800) 850-5000.