We understand that overdrafts occasionally happen. Overdraft Privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of the overdraft privilege and the amount of the overdraft fee. First United Bank is not obligated to any item presented for payment if the account does not contain sufficient available funds. Any discretionary payment made by First United Bank of an overdraft check (or items, such as ATM withdrawals and debit card transactions) does not obligate First United Bank to pay any other overdraft check (or item), or to provide prior notice of its decision to refuse to pay such check (or item).
First United Bank will have the discretion to pay overdrafts within the overdraft protection limit, if your consumer account has been open for at least thirty (30) days, or if your commercial account has been open for at least sixty (60) days, and thereafter remains in good standing.
An account is considered “in good standing” if the following criteria are met:
- Bringing your account balance to a positive balance within every thirty day period for a minimum of 24 hours.
- If you are not in default on any loan or other obligation to First United Bank.
- If you are not being subject to any legal or administrative order or levy.
Payment by First United Bank is a discretionary courtesy and not a right to the consumer, or an obligation of the Bank.
Overdraft Privilege Limits
Overdraft Privilege limits are assigned by product type.
The limits are as follows:
- Spirit Rewards Checking | $500
- Achieve Interest Checking | $700
- Heritage Checking | $700
- eMerge Checking | $300
- Small Business Free Checking | $1,000
- Business Checking | $1,000
- Business Interest Checking | $1,500
- Business Analyzed Checking | $1,500
In addition, any account with Direct Deposit (including eMerge Checking) is eligible for up to a $300 limit. The limit assigned to a particular customer may also be increased upon officer approval. The maximum for personal checking accounts is $700 and the maximum for business checking accounts is $1,500. Fees charged for covering overdrafts will be subtracted from any applicable overdraft limit.
We can cover overdrafts in (2) two different ways:
- We have standard overdraft practices that come with most accounts.
- We also offer overdraft protection plans, such as a link to a savings account or to a personal line of credit, which may be less expensive than our standard overdraft practices.
Standard Overdraft Practices
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using a checking account number
- Automatic bill payments
Unless asked by a customer, First United Bank does not authorize and pay overdrafts for the following types of transactions:
- ATM transactions
- Everyday check card transactions
We pay overdrafts at our discretion. This means that we do 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.
The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all non-sufficient funds fees is due and payable upon demand, and the Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account Agreement and Disclosure with a maximum repayment period of 30 days.
For customers that use Overdraft Privilege, the FDIC has determined that six or more transactions resulting in an overdraft fee in a rolling twelve month period is considered excessive; therefore, if you incur six or more overdraft fees in a rolling twelve month period we will notify you immediately.
Click here to learn more about how to protect yourself from overdraft and bounced check fees.
Fees Charged if First United Pays an Overdraft
Under our standard overdraft practices:
- We will charge you a fee of up to $25 each time we pay an overdraft.
An interest rate of 18% (Interest on Overdrafts) will be assessed daily on the overdrawn balance (negative balance) on the account.
- There is no limit on the total fees we can charge you for overdrawing your account. However, there is a limit of $150 in fees per day we can charge you for overdrawing your account if enrolled AND if transactions fall within the Overdraft Privilege (ODP) Program. The daily limit does not include any “Interest on Overdrafts that you may incur.”**
- Consumers will not be charged an overdraft fee if an item paid within the Overdraft Privilege Program results in an overdrawn end of day account balance of $5 or less.
First United Bank can authorize and pay overdrafts on ATM and everyday check card transactions.
If you would like First United Bank to authorize and pay overdrafts on ATM and everyday check card transactions:
Visit your nearest First United Banking Center.
Call (855) 382-7827 (FUB STAR) to request an opt-in form.
You may opt out of Overdraft Privilege Program at any time by calling a First United Bank customer service representative at (855) 382-7827 (FUB STAR).
*Good standing with the bank includes: (1) Making regular deposits consistent with your past practices (2) Depositing an amount equal to the amount of discretionary courtesy overdraft extended to you or more in your account within each thirty (30) day period. (3) You are not in default on any loan or other obligation to First United Bank (4) You are not subject to any legal or administrative order or levy.
** Each checking account is eligible for Overdraft Privilege following the first thirty (30) days for individual, or sixty (60) days for business, that the account is open, if during that time the account is handled in a satisfactory manner. Overdraft Privilege can be increased up to $1,500 on business accounts with Direct Deposit. A fee may be imposed for covering overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means as applicable. A fee up to $25 per item will be imposed for NSF and overdrawn items. An interest rate of 18% will be assessed daily on the overdrawn balance (negative balance) on the account. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or if you have too many overdrafts.