Overdraft Authorization

What you Need to Know about Overdrafts and Overdraft Fees:

An overdraft occurs when you do not have enough money in your account to cover a transaction and the bank pays the item. The bank has standard overdraft services that come with your account.

We do authorize and pay overdrafts on:

• Checks and other transactions using your checking account number;
• Automatic bill payments

We do not authorize and pay overdrafts on the following unless you OPT-IN.  An add-on service separate from the bank’s standard overdraft practice. (Personal accounts only)

• ATM withdrawals;
• Everyday (non-recurring) debit card transactions 

The bank pays overdrafts at its 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. When First National Bank of Waterloo pays your overdraft(s), you will be charged a fee of up to $30.00 per overdraft item, with a limit of five overdraft fees per day. (Personal accounts only)

First National Bank of Waterloo also offers a variety of overdraft protection plans such as a transfer sweep, cash reserve or line of credit which may be less expensive than our standard overdraft service.  

Overdraft Protection Plans:

Overdraft Protection Sweep: (Personal & Non-Personal accounts)

• Automatic transfer that sweeps money from one deposit account to another deposit account to cover overdrafts.
• One transfer covers multiple overdrawn items 
• $ 10.00 transfer sweep fee.
• No loan application is required

Cash Reserve: (Personal accounts)

• A personal unsecured loan that will fund your account in the event of an overdraft.
• A transfer of funds will occur as needed to cover overdrafts until the credit line is reached.
• A minimum monthly payment of $25.00 (plus interest) is set up from your checking account to pay towards the balance of funds advanced from the cash reserve account. 

Line of Credit: (Non-Personal accounts)

• A Line of Credit to cover overdrafts that may occur on your Non-Personal checking account.

All overdraft protection plans avoid the embarrassment of returned checks, eliminate Insufficient Funds fees, represented item fees and allow you to have peace of mind when times get tough. To learn more, ask us about any of the bank’s overdraft solutions listed above.