Overdraft Protection
Our Overdraft Protection
NBT Financial offers three overdraft solutions to assist you in managing your account while allowing you to control your cost. Paying attention to your financial needs is our top priority.
To prevent Non-Sufficient Funds (NSF) fees or Overdraft fees we recommend that you maintain all account activity in a check register and routinely reconcile your account to the balance reported by the bank. Using our Telephone Banking system at 877-857-2265, E-Banking at www.nbt.bank, E-Banking alerts, Email Notifications and Text Messaging to monitor your account balance and account activity can assist you in managing your account.
NBT offers the following alternatives to cover NSF’s and Overdrafts.
- Sweep from another NBT account
- Ready Reserve* Includes transaction charge
- Overdraft Protection Limit. Includes Overdraft fee of $39.50** per item. Maximum of 5 per day.
Sweep:
This product allows you to protect your account against NSF/Overdraft fees by transferring funds from another NBT account when needed. By creating a link between your primary checking account and another NBT account, any items that would cause an NSF/Overdraft in the primary checking account will be paid by available funds that are automatically “swept” or transferred from your other NBT account. Certain account types have transaction limitations; please speak to a Personal Banker to determine whether transaction limitations apply.
Ready Reserve (Line of Credit):
With credit approval you could qualify for a Revolving Line of Credit, that would be tied to your checking account and protect you against NSF/Overdraft fees. Any presented items that would cause an NSF/Overdraft in the account will be paid by funds that are transferred from the line of credit (up to the available limit). This Line of Credit is a loan that you pay back with interest. This is available to consumers only. Please see a Loan Officer to apply.
Overdraft Protection Limit:
The Overdraft Protection Limit for a new Consumer Checking Account (Money Market not eligible) will be $75.00 for the first 90 days of the account. After 90 days has passed, if the account is in good standing, the Overdraft Protection Limit will increase to $300.00. Consumers who keep their accounts in good standing will continue to receive the Overdraft Protection Limit.
Circumstances in which an item may not be paid
Consumers who do not keep their accounts in good standing will be at risk for removal of the Overdraft Protection Limit and subject to charge off of the account. We are under no obligation to pay items when your account has insufficient funds, even if previous transactions were paid.
(Good standing is defined as; 1) making regular deposits sufficient to cover your transactions; 2) bringing your account to a positive balance (not overdrawn for more than 30 days consecutively); 3) avoid excessive overdrafts suggesting the use of the “Overdraft Protection Limit” as a continuing line of credit and; 4) there are no legal orders outstanding on your account).
Categories of Transactions
When there are not available funds in your account to cover an item, subject to the bank’s sole discretion, we may allow you to overdraw (OD) your account. Overdraft Protection Limit covers in person withdrawals, checks, transfers, recurring debit card transactions, automatic bill payments and other transactions made using your checking account number.
In order to authorize the Overdraft Protection Limit coverage on ATM and everyday debit card transactions you must affirmatively “Opt-In” for those types of transactions. To “Opt-In” speak to a Personal Banker. You may revoke your decision to “Opt-In” at any time.
Deposits to cover NSF/Overdrafts must be received within 30 days of the NSF/Overdraft. If the NSF/Overdraft is not paid within 30 days, the account could be subject to charge off. The bank reserves the right to suspend Overdraft Protection Limit from any account if, in the bank’s judgment, the likelihood that an NSF/Overdraft will not be repaid exists. NBT offers this service as a courtesy in anticipation that you will be making a deposit within 30 days to bring your account to a positive balance.
Processing Order:
Our policy is to pay items in this order:
In-house transactions
Debit and ATM card transactions
ACH transactions
Checks in numerical sequence (lower items are paid first)
Fees:
One NSF/Overdraft (OD) fee of $39.50** is charged to your account for each NSF/Overdraft transaction item that is returned or paid. No more than $197.50** in total for NSF or Overdraft fees will be charged per day.
An Overdraft fee will not be charged to your account if the item being paid overdraws your account less than $10.00.
You acknowledge that the charging and collection of the NSF/Overdraft fees are not interest or compensation charged by us for the use, forbearance or detention of money.
Non-Sufficient Funds (NSF) fees for Re-Presented Items
If we do not pay the debit transaction or item on your behalf and return the debit or item, we may charge you NSF fees. Pursuant to NACHA Operating Rules and Guidelines and other applicable laws, a debit or item may be presented for payment more than one time. We may charge you NSF fees for each resubmission of a debit or re-presentation of an item, which means you may incur multiple NSF fees if a debit or item is returned more than one time. For example, you write a check from your account with us. The check is returned for NSF, and we charge you NSF fees. The same check is then re-presented to us for payment, and the check is returned again for NSF. We may charge you NSF fees the second time the check is presented for payment and returned for NSF.
Notices
NBT provides customers the option to receive electronic notices, so they can be quickly alerted when items are returned or paid for NSF/Overdraft. Customers can sign up for electronic notices through the MyNBT mobile app or NBT’s online banking platform. Please contact an NBT representative if you would like help setting up your electronic notices. Customers who do not sign up for electronic notices, will be mailed a paper notice.
*Ready Reserve available only to customers with Approved Credit
**Fee subject to change