How You Can Manage Overdrafts

bank statement with calculator

Overdrafts happen when you write a check, withdraw money, make a purchase with your debit card, or make an automatic bill payment for more than what’s in your checking account and the bank honors the transaction. Avoiding overdrafts might be the lowest-cost way to preserve your money. But at Tennessee State Bank, we offer an overdraft program called No Bounce AdvantageTM, for just in case. Read on to find out more about the overdraft program we offer and how you can manage it.

No Bounce AdvantageTM with Tennessee State Bank

woman with debit card on laptopNo Bounce Advantage is a special overdraft program that’s designed to pay inadvertent transactions when you don’t have enough funds in your account. The limit is assigned based on the type of checking account you have with us. This program costs you nothing unless you use it for transactions that are more than what you have on deposit in your account. Up to the available overdraft limit for your account, we may pay, including but not limited to, a check, inperson withdrawal, or other transactions such as automatic bill payments. We may also authorize and pay an ATM withdrawal or everyday debit card transactions on a commercial checking account. For personal checking accounts only, we do not authorize and pay overdrafts for ATM transactions and everyday debit card transactions unless you ask us to do so. In order to permit the bank to authorize and pay an ATM transaction or an everyday debit card transaction using your overdraft limit, you must opt-in to this service. When you use No Bounce Advantage, an overdraft item fee of $33 for each transaction and the amount of the overdraft items are subtracted from your overdraft limit. You must bring your account to a positive balance at least every 30 days by making deposit(s) of at least the amount you have used of your overdraft limit. The overdraft limit used will be automatically paid back from the deposit(s) you make into your account as soon as adequate funds are available. Keep in mind that whether your overdrafts will be paid is discretionary, and we reserve the right not to pay. For example, if your account is not in good standing or you have too many overdrafts, we typically do not pay your overdrafts. Click here for more information on No Bounce Advantage for personal and commercial checking accounts and other low cost alternatives.

To better manage overdrafts programs, follow the tips below:

1. Avoid using it on a regular basis.

You want to avoid using overdraft program limits on a regular basis because it gets costly. It costs you nothing when you avoid overdrafts.

2. If you overdraw your account, get money back into it as soon as possible.

person depositing money at bankIf you do overdraw your account, you want to get the money back into it as soon as possible. Put enough money back into your account to cover both the amount of the overdraft and any bank fees.

3. Pay attention to your electronic transactions.

Pay close attention to all of your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments you have set up for things like utilities or loan payments.

4. Know when your funds are available.

Most deposits are processed fast, but larger checks or some electronic transfers may not appear until a couple of days later. Before you spend your money, make sure you have enough money cleared in your account to pay your bills and make purchases.

5. Keep an eye on your account balance.

Keep a close eye on the balance of your account. Remember that transactions arrive at the bank through different channels and may not be processed in real time or in the order they occur.

6. Review your account statements every month.

Reviewing your account statements each month is a good way to find out which payments have cleared. Between statements, you can check your balance and find out what transactions have cleared by calling the bank, checking online, getting a text or e-mail alert service or visiting an ATM. Reviewing your statement allows you to track what you pay each month and throughout the year for returned items fees and overdraft fees. You can use this information to evaluate your overdraft program experience.

About Tennessee State Bank

TSB Corporate HeadquartersTennessee State Bank has been serving our local community for over 45 years. With branches in Sevier County, Knox County, Cocke County, and Jefferson County, we offer convenient banking services in East Tennessee. Whether you’re looking to open a checking account, obtain an auto loan, or apply for a home mortgage, we make the process as simple and straightforward as possible. Tennessee State Bank’s motto is “Banking at its Best!”SM, and we strive to live up to that creed every day. Let us know how we can help you by sending us a message via our Contact Form.

Tennessee State Bank is Member FDIC and an Equal Housing Lender.

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References:
“Understanding Overdraft Options.” American Bankers Association, https://www.aba.com/Consumers/Pages/UnderstandingOverdraftOptions.aspx