How to Avoid or Minimize Overdraft or Returned Item Fees

If you pay Overdraft or Returned Item fees regularly, you pay a lot for very short-term cash needs. Overdraft fees occur when you don’t have enough money in your account to cover your transactions. The cost for overdraft or returned item fees is $30 per transaction. Please understand that you are charged a $30 fee for each presentment of a paid overdraft transaction, up to six times per day. There is no daily limit to the number of Returned Item fees you can be charged. Note that an Overdraft or Returned Item may be presented to us multiple times by the payee. These fees can add up quickly and have costly ripple effects.

Here are some steps to reduce those costs:
 

Track your balance– To avoid overdraft and returned item fees, always track your balance as carefully as possible. We offer you a variety of ways to monitor your account balance daily. You can access your account balance by contacting us during regular business hours, utilizing 24-hour Telephone banking, or visiting your local banking center. You may also access your daily account balance via Online Banking or with the Mobile Banking App, by visiting with a Teller using Video Teller, or by performing a balance inquiry at any ATM (balance inquiry fees and not-on-us ATM fees will apply if the ATM is not a Wood & Huston ATM or a partnered ATM. Partnered ATM listings can be found on our website.) You may also sign up for low balance alerts via Online Banking or the Mobile Banking App. These alerts can tell you when you risk overdrawing your account. If you have regular electronic transfers such as rent, mortgage payments, or utility bills, make sure you know how much they will be and what day they occur.

Opt-out of overdraft coverage– If you want to avoid overdraft fees, consider opting out of overdraft coverage for debit purchases or ATM withdrawals. Without overdraft coverage, your card will be declined if you don’t have enough money in your account to cover a debit purchase or ATM withdrawal. You won’t be able to complete the transaction, but you won’t incur an overdraft fee either.

Transfer money– You can transfer money between your accounts by accessing your account online or through the Mobile Banking App. Online Banking and your Mobile Banking App offer a funds transfer service, Zelle®, that allows you to receive funds from your family, friends, and others until your next expected deposit or to gift money to you.

Link to another account– To prevent overdrafts, you may link your checking account to another account, such as a funded savings account. If you overdraw your checking account, money may automatically be transferred from your linked account to cover the difference as long as you have sufficient funds in your savings account. You will be charged a transfer fee of $6 each time this happens, a much lower fee than an individual overdraft.

Get a loan or a line of credit– Sometimes, it may be cheaper to take out a loan to cover your overdraft balance. Traditional loans and lines of credit will accrue interest; however, a Fresh Start loan may be available if you qualify. A Fresh Start loan is an interest-free loan you can use to cover your overdrawn balance.

Use cash– If you need to make multiple overdrafts or purchases, and your account is protected with a CoverMe™, Overdraft Privilege Limit, consider withdrawing to cover them (one transaction and one overdraft fee) limit. You can then pay the bills or make the purchases with withdrawn cash. For example, if you have three bills totaling $200 due before your next deposit and have the funds in your account to pay them, do not make three separate payments from your account. That will result in three separate overdraft fees. Instead, withdraw $200 cash from your account, and pay the three bills from that cash. You will still pay one overdraft fee, but one overdraft fee is better and cheaper than three.