What is the “Overdraft Privilege Program”?
Our Overdraft Privilege Program is a service we add to your checking account to cover inadvertent overdrafts to a set limit, subject to the eligibility criteria as explained below. Non‐sufficient funds may result from: A) the payment of checks, electronic funds transfers, or other withdrawal requests you initiate; B) payments authorized by you; C) the return of, or unpaid, items deposited by you; D) charging your account for our applicable service charges and fees; E) the deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet “available” or “finally paid”. With the Overdraft Privilege Program we will, as a discretionary service and not as a right or obligation guaranteed to you, strive to pay your reasonable overdrafts when your account is in good standing and meets eligibility. We reserve the right not to pay.
Good standing includes the following criteria:
- Date account was established
- Number of deposits
- Dollar amount of deposits
- Deposit patterns
- Repayment patterns
- Overdraft Activity
For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. When we pay overdraft items for you (which includes both insufficient and unavailable items), you will be charged our normal ACH OD/NSF Charge or Overdraft/NSF Charge, currently $35.00, for each item that is presented up to the maximum daily cap, where applicable. We do not assess an ACH OD/NSF Charge or Overdraft/NSF Charge if the account is overdrawn an aggregate $5.00 or less. The maximum number of ACH OD/NSF Charges or Overdraft/NSF Charges that may be assessed is five per day (per business day) on consumer accounts. Business accounts do not have a maximum daily cap. All deposits to overdrawn accounts are applied to the negative balance.
Eligibility – No application is required for our Overdraft Privilege Program, eligibility is at the sole discretion of Nantucket Bank and is based on you managing your checking account in a responsible manner.
Ineligible Accounts and Limitations: Savings Type Accounts, Money Market Accounts, Public Fund/Charitable Organization Accounts, Certain Trust Accounts, IOLTAs and Minor Accounts (not of legal age) are not eligible for this service. We may, in our sole option and discretion, limit the number of your accounts eligible for the Overdraft Privilege Program to one account per household and/or one account per taxpayer identification number.
Suspension/Revocation – Your Overdraft Privilege Program may be suspended or permanently removed based on the following criteria:
- Your account type is not eligible.
- You are more than 30 days past due on any Nantucket Bank loan or delinquent on any other obligation to the Bank.
- You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding.
- Your account is being reviewed for fraudulent activity or transactions.
- The primary account owner is less than 18 years old.
- An eFunds or other negative indicator has been reported to us.
- You have an account that has been opened less than 30 days.
- You have an outstanding balance on an Overdraft Repayment Plan.
- Your account is classified as inactive.
- You have an unresolved prior loss with the Bank.
- We do not have a valid address for you.
Optional Overdraft Protection Services: We offer additional overdraft protection services that you may apply for. These services can help protect your account from overdrafts and returned items. Information on available overdraft protection options may be obtained from customer service personnel. If you have one of the following optional overdraft protection services, and are a participant in the Overdraft Privilege Program, you may only link one optional overdraft protection service to each checking account. We generally make overdraft protection transfers from the optional service first, before applying an overdraft balance to the Overdraft Privilege Program.
- Overdraft Protection Credit Line (Revolving Line of Credit): If you are approved for this optional service, you may save money on the total charges you pay us for overdraft protection services by reducing the number of ACH OD/NSF Charges or Overdraft/NSF Charges assessed to your account
- SavingsNet: If you apply and qualify for this service, you will have overdraft protection (for your checking account) from a linked checking or savings account. Details are available in the disclosure entitled “Important Consumer Account Information” and the Fee Schedule for Consumer Accounts. SavingsNet is also available to business customers with details available in the disclosure entitled “Important Business Account Information” and the Fee Schedule for Business Accounts.
Overdraft Privilege Program Disclosure
Transactions Covered Using Your Overdraft Privilege Program Limit: Overdraft/NSF transactions initiated for payment against your checking account may be paid by us using your assigned Overdraft Privilege Program Limit, including our charges. Our overdraft charges may be imposed for paying (ACH OD/NSF Charge or Overdraft/NSF Charge), or not paying (ACH Return Charge or Charge to Return Check), overdrafts you create by: Checks; ACH debits; MasterCard Debit Card Transactions (including Point of Sale transactions); preauthorized automatic transfers and future‐dated or recurring online banking bill (eBillPay) payments. Overdraft Privilege Program will not be accessible for in-person transactions in branch locations, via online banking or mobile banking. Overdraft Privilege Program will not be available for ATM and everyday debit card transactions unless you authorize Nantucket Bank by opting these transaction types into the program.
Opt Out – You have the right to opt-out of the Overdraft Privilege Program, but it is an expensive way to handle your account. You may choose at any time not to participate in the Overdraft Privilege Program by notifying one of our Customer Service Representatives who will explain what this (“Opt-Out”) means and the potential consequences for you. It is important for you to consider that by opting out of this service without some other form of overdraft plan such as an account transfer or line of credit (which is offered to qualified accounts) you are instructing us to return unpaid all items presented against non-sufficient funds. If you opt-out, you will still be charged our $35.00 returned overdraft charge (ACH Return Charge or Charge to Return Check).
Customers who receive a Social Security, federal direct deposit, or any other entitlement benefit must opt-out if they do not want the Bank to apply those funds to pay an overdraft.
Payment Order of Items: The order in which items are paid from your account is important when there is not enough money in your account to pay all of the items that are presented. The order items are paid can also affect the total fees assessed to your account. To assist you in handling your account with us, we are providing you with the following information regarding how we process your items:
- First, we process teller transactions, ATM withdrawals, PIN Point of Sale card transactions, and mobile, phone and online banking transfers in the order they are received.
- We process signature based debit card transactions second, in the order they are received.
- We process Automatic Clearing House (ACH) debits third, in the order they are received.
- We process checks fourth, based on the serial number order of the items presented, with lower numbered items paid first, on the day in which they are presented for payment.
- We process service charges assessed by the Bank last.
NOTE: Please be aware that holds placed on your account for pending electronic transactions, such as hotel or rental car deposits, reduce your available balance and may cause your account to become overdrawn.
Excessive Use – We monitor customer accounts for chronic or excessive use. If you overdraw your account more than six times in a rolling twelve month period you will be contacted to discuss alternatives and/or continued use of Overdraft Privilege Program.
Financial Education – Nantucket Bank believes that financial literacy and education helps customers make informed decisions. Heightened awareness of personal financial responsibility helps customers realize the benefits of responsible money management, understanding the credit process and the availability of help if problems occur. www.MyMoney.gov is the federal government’s website that serves as the one-stop for federal financial literacy and education programs, grants and other information. If at any time you feel you need help with your financial obligations, please contact us at 800.361.6903 to discuss your options, or visit your local branch and speak with the Branch Manager.
Account Agreement – Your account agreement (Important Consumer Account Information for consumer accounts and Important Business Account Information for business accounts) describes the duties, obligations, and rights of depositors, authorized signatories and Nantucket Bank with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.
Account Closure: Any account with a sustained negative balance of 55 days or greater may be closed within 60 days. We may report information about your account to credit bureaus as disclosed in the Important Consumer Account Information and the Important Business Account Information booklets. Account closures due to negative balances sustained for 55 days or greater may be reflected in your credit report.
Waiver: Nantucket Bank’s forbearance from, or delay in, exercising any of the its rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Overdraft Privilege Program disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank’s rights, remedies or privileges.
ALWAYS A DISCRETIONARY* SERVICE: Our Overdraft Privilege Program does not constitute an actual or implied agreement between you and us, nor does it constitute an actual or implied obligation of or by us.
*Our Overdraft Privilege Program represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.
What You Need to Know about Overdrafts and Overdraft Charges
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 an Overdraft Protection Credit Line (Revolving Line of Credit), if applied for and approved, or SavingsNet, overdraft protection that, if applied for and qualified for, can provide overdraft protection from a linked checking or savings account. 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
- Recurring debit card transactions
After 8/15/2010, we do not authorize and pay overdrafts on consumer accounts for the following types of transactions unless you ask us to (see below):
- One time debit card transactions
- ATM 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 Nantucket Bank pays my overdraft?
Under our standard overdraft practices:
- We will charge you $35** each time we pay an overdraft or return an item for non-sufficient funds. These charges are referred to as ACH OD/NSF Charge (for overdraft items) and ACH Return Charge or Charge to Return Check (for items that are returned for non-sufficient funds) fees in the Fee Schedule for Consumer Accounts and the Fee Schedule for Business Accounts.
- **Chapter 234 of the Acts of 2010 limits the amount of these same charges to $5 each for persons 65 year of age or older, or 18 years of age or younger. Please consult with a bank representative to determine if you are eligible.
- There is a daily (per business day) combined maximum of five (5) ACH OD/NSF Charge, Overdraft/NSF Charge, ACH Return Charge or Charge to Return Check charges that we can assess your consumer account. There is no daily cap applicable to business accounts.
- The Bank does not charge a checking account participating in the Overdraft Privilege Program an ACH OD/NSF Charge or Overdraft/NSF Charge for transactions that overdraw an account by an aggregate amount of $5.00 or less. This is applicable to both business and consumer accounts.
CONSUMER ACCOUNTS ONLY
What if I want Nantucket Bank to authorize and pay overdrafts on my one-time debit card transactions?
If you also want us to authorize and pay overdrafts on one-time debit card transactions, please submit a secure Overdraft Privilege Program Opt-in/Opt-Out Form online, call us at 508.228.0580, or visit one of our branch locations. You have the right to revoke your consent at any time by contacting the Bank.