Routing #: 031311593

Effective Date: 03/01/2024

Overdraft Protection Services Policy

Fleetwood Bank (“the Bank”) offers several overdraft protection (ODP) services. This document explains how each service operates and how you, the Bank’s customer, may enroll in an ODP service. The ODP services available to you are as follows: Overdraft Assurance Program, ATM/Debit Card Overdraft Program, and Bounceless Checking.

What this means to you: If your account qualifies, the Bank will consider, without obligation on its part, paying the item for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid. You will be assessed an overdraft fee for each transaction we pay up to five (5) overdraft fees per business day per each overdrawn account.

What is an overdraft? An overdraft occurs when you do not have enough money in your account to cover a transaction. Although there are many reasons why your account might become overdrawn, most overdrafts result from the following:

  • You write a check, swipe your debit card or initiate an electronic funds transfer in an amount that exceeds the amount of funds available in your account;
  • You may have enough money in your account to authorize the debit card transaction, but the actual dollar amount of the transaction is more;
  • Merchants may only place a hold on your card at the time of the transaction, but that hold may be smaller than the total dollar amount of the transaction which later posts to your account;
  • You deposit a check or other item into your account and the item is returned unpaid and the funds are withdrawn from your account; or
  • You have inadequate funds in your account when we assess a fee or service

Overdraft Assurance Program

The Bank offers an Overdraft Assurance (OA) Program, a courtesy service that will cover your account in the event of an overdraft. The Bank has certain requirements that must be met before an account is eligible for this program:

  • The account must be in an active status
  • The account must be established for 90+ days, with no overdraft occurrences within that time
  • Account owner(s) must be 18 years of age or older
  • The account is not subject to a legal or administrative order or levy, such as bankruptcy or tax lien Program Guidelines:
  • Payment of your overdraft is not guaranteed
  • Courtesy overdraft limit for a personal account is $800.00
  • Courtesy overdraft limit for a business accounts is $1,500.00
  • You are expected to bring your account balance back to a positive balance within a reasonable amount of time, otherwise;
  • If your account is overdrawn for five (5) consecutive business days, it will be removed from the Overdraft Assurance Program
  • Your account will start to incur a fee each day that it continues to be overdrawn after the 5th business day of being overdrawn
  • If a deposit has not been made to bring the balance to a positive amount after a period of 30 calendar days, the Bank will notify you that the account is to be closed in ten (10) calendar days
  • Standard overdraft fees will apply
  • The Bank has the right to suspend this service at any time due to negative account behavior, such as excessive overdraft activity
  • Participation in the OA Program is not mandatory. You may opt-out of the service at account opening or any time thereafter by signing the Overdraft Protection Services: Revocation Form
  • Your available balance, shown on receipts, iBanking, , will not include the OA limit

If an account has been accepted into the OA Program, the Bank will authorize and pay overdrafts for the following types of transactions: Checks and other transactions made using your checking account number, electronically converted checks, ACH items, and online banking bill payments.

The Bank retains full discretion to decline to pay any item under the OA Program. This means any overdraft can be refused for payment for any reason. The Bank’s decision to pay an overdraft item, absent an agreement to the contrary, does not create any duty to pay future overdrafts. If the Bank does not authorize and pay an overdraft, your transaction will be declined. A notice will be generated the same day and sent to the account address on file. NSF fees will be assessed on your account in accordance with your account agreement and the fee schedule in effect at the time of the overdraft.

ATM / Debit Card Overdraft Program

Federal regulations require banks to get your permission before paying ATM and one-time, nonrecurring, point of sale debit card transactions on consumer accounts when charging a fee. If you want the Bank to authorize and pay overdrafts on ATM and debit card transactions, you must “opt-in” and authorize us to do so in writing by completing the Overdraft Protection Services: Opt-In/Opt-Out Form. Standard overdraft fees will apply for authorized transactions that result in an overdraft.

If you do not want the Bank to authorize and pay these overdrafts, your transaction will be declined at Point-of- Sale.

The Bank pays overdrafts at its discretion, which means there is no guarantee that any type of transaction will be authorized and paid. If the Bank does not authorize and pay an overdraft, your transaction will be declined.

If you decide to Opt-In, authorizing the Bank to pay ATM and one-time, nonrecurring debit card transactions, you have the right to revoke such consent at any time by signing the Overdraft Protection Services: Revocation Form.

Bounceless Checking

Bounceless Checking gives you the ability to link a deposit account, such as a savings, money market, or another checking account, to your primary checking account to cover overdrafts. A transfer fee will be charged to this linked deposit account if the bounceless service was activated due to an overdraft on the account being covered with the service. The fee will post after the transfer takes place to cover the checking account. The transfer amount will be in the amount of your overdraft, as long as there are sufficient funds in the linked account to cover the negative balance in the checking account.


Under the Bank’s standard overdraft practices, a fee of $35.00 will be assessed for each of the first five (5) overdraft items that post to your account on any given business day. If you have more than one overdrawn account, this rule applies to each account separately. The Bank will notify you by mail regarding the payment or return any item(s) that cause insufficient or unavailable funds on your account. The amount of any overdraft, including the fee, is due and payable immediately and will automatically post to your account at the time of the overdraft.

If your account is overdrawn with a negative balance for five (5) consecutive days, you will be charged an additional $5.00 fee per day starting on the 6th business day and will continue to be charged each day your account continues to be overdrawn.

A bounceless checking fee of $6.00 will be applied to the deposit account that is linked for bounceless protection.

Payment Order

For items being debited from your account, the transactions post smallest dollar amount to largest dollar amount. For items crediting your account, the transactions post largest dollar amount to smallest dollar amount.

Tips for Avoiding or Reducing Overdraft Fees

The following tips may help you to avoid or reduce overdraft and returned item NSF fees.

  • Check your account balance and transactions regularly to avoid You can easily access your account information using the online banking services at or by using the telephone banking system at 1-800-401-4050.
  • Record your check and debit card transactions in your register as soon as you make them and keep a current balance. Remember to anticipate and record any recurring automatic bill payments. Promptly adjust your register if you receive notice of an overdraft, NSF, or returned Don’t forget to deduct any related service charges. Reconcile your statement monthly and notify the Bank of any errors or unauthorized transactions.

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