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What You Should Know about Overdrawing your Checking Account

What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a transaction, like a cash withdrawal at an ATM or a purchase with a debit card at a store. At our discretion, we may decide to pay the check or process the transaction even though you don’t have sufficient funds available; however there is no guarantee that we will decide to do that. In some cases, your check will be returned or your transaction will be denied. If we do decide to process transactions that overdraw your account, you will be charged a fee for each item, unless you have one of our alternate overdraft services listed below. 

Does Union Savings Bank offer any overdraft services?
Yes, we can cover your overdrafts in two different ways:

  • We have standard overdraft practices that come with your account.

  • We also offer overdraft protection plans, such as a link to a savings account or to an overdraft line of credit, which may be less expensive than our standard overdraft practices.

What are the 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

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:


  • ATM transactions

  • Everyday debit card transactions

We pay overdrafts at our discretion, which means 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.

What is Overdraft Protection?

  • Overdraft Protection is an overdraft line of credit, which allows you to overdraw your checking account up to the amount of your pre-established credit line. Interest is charged on the amount borrowed against the overdraft protection until you make a deposit, which will first be applied to the overdraft protection. Any remaining deposit balance is added to your checking account.

How do I get an Overdraft Protection Account?*
You must apply for a overdraft protection overdraft line of credit*. Please visit the branch nearest you to apply. 

I’m not sure that’s what I want. Are there other ways to cover overdrafts?

  • Yes. Automated Savings Transfer is a service that automatically transfers funds from your linked savings account to cover overdrafts on your checking account. There is a fee each time an Automated Savings Transfer is made, but only one transfer per day is necessary, so you do not pay the fee for each item that may have created the overdraft.

What about overdrafts at the ATM, or when I use my debit card?
We may allow you to overdraw your account at the ATM or when using your Visa®  Debit Card, but in order for us to allow ATM and one-time debit card transactions to overdraw your account, we are required to obtain your consent (you must “opt-in”). Upon your consent, we will, at our discretion, pay for ATM and one-time debit card transactions when there are insufficient funds in your account. If you do not “opt-in” then those transactions will be declined. This service is in addition to the authorization and payment of checks, automatic bill payments, and other transactions made using your checking account number. A new feature on our ATMs will now warn you when a transaction you requested would overdraw your account, and give you the opportunity to cancel the transaction before incurring an overdraft fee.

How does this Opt-In Service benefit me?
Many customers find the service to be a convenient and cost-effective means of preventing the denial of transactions using an ATM or debit card that would overdraw their accounts. Even if you've never overdrawn before, it's good to know you could be covered.

What fees will I be charged if Union Savings Bank pay my overdraft?
There is no fee to enroll in the Opt-In service. There are only fees incurred if/when you use the service and those are as follows:

  • We will charge you a fee of $35.00 each time we pay an overdraft, not to exceed 4 overdrafts per day ($140.00).
  • Also, if your account is overdrawn for over five business days, beginning on the 6th business day a $5.00 per day fee will be assessed for each business day the account remains overdrawn. There is no limit on the total fees we can charge you for overdrawing your account.
  • Consult our Schedule of Charges for current Deposit Fee information.

*All loans are subject to credit approval