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, but we pay it anyway. 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 a line of credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains 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 (see below):

  • 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 fees will I be charged if Frandsen Bank & Trust pays my overdraft?

Under our standard overdraft practices:

  • We charge no fees on account balances that are overdrawn less than $5.00.
  • On account balances that are overdrawn $5.00 to $20.00, we charge a fee of $10.00 each time we pay an overdraft item.
  • On account balances that are overdrawn more than $20.00, we charge a fee of $28.00 each time we pay an overdraft item.
  • Also, we charge a $10.00 continuous overdraft fee on the 4th business day of no overdraft/insufficient funds activity and continuing every business day thereafter.
  • We will not charge more than $150.00 in combined overdraft and insufficient fees in a day.

What if I want Frandsen Bank & Trust to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, do one of the following:

Click Here to print this form.




We will confirm via email that we have received your request.

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