Overdraft Privilege Program Policy

It is Nantucket Bank’s (“we, us, or our”) policy to comply with applicable laws, rules and regulations, and to conduct business in accordance with strict safety and soundness standards. A non‐sufficient funds (overdraft/negative balance) 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, unpaid, of 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”. We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, all non-sufficient funds items that you may have, if your “eligible account type” has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: (A) Depositing at least $400 or more in your account within the first thirty (30) day period after account opening, (B) You are not in default on any loan obligation to us, and (C) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned Overdraft Privilege Program Limit, including our fees. We reserve the right to require you to pay your outstanding overdraft (negative) balance, including our fees, immediately or on demand.

This discretionary* service will generally be limited to an $800 overdraft (negative) balance for eligible checking account types. Our normal fees and charges including, without limitation, our non‐sufficient funds (NSF) or overdraft (OD) fees (herein referred to as Overdraft/NSF Charges), of $33 will be charged for each transaction initiated for payment from your checking account that does not have sufficient collected funds. We do not assess an Overdraft/NSF Charge if the account is overdrawn an aggregate $5.00 or less. The maximum number of Overdraft/NSF Charges that may be assessed is five per day (per business day).  Typically, we will assess our normal Overdraft/NSF Charge whether we approve an overdraft item for payment or return it unpaid.  If the item is returned unpaid, it is referred to as a ‘Charge to Return Check – unpaid item.’ Additionally, a Consecutive Day OD Fee of $30 may be assessed for any negative balance sustained for 7 business days or greater. 

Our Overdraft/NSF Charges will be included in and count against your assigned Overdraft Privilege Program Limit of $800.  Whether your overdrafts will be paid or not is at our sole discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above, or if you have too many overdrafts. We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail of any non‐sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our charges that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our charges.

  • 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 your Overdraft Privilege Program.
    • Overdraft Protection Credit Line (Revolving Line of Credit):  If you apply and 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 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.
  • Ineligible Accounts and Limitations: The Overdraft Privilege Program is available only for eligible checking accounts that are maintained in good standing as defined above. Savings Type Accounts, Money Market Accounts, Public Fund/Charitable Organization Accounts, Certain Trust Accounts 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 Overdraft Privilege Program to one account per household and/or one account per taxpayer identification number.
  • Eligible Account Types: The account types that are eligible for the Overdraft Privilege Program are all consumer checking accounts.
  • Payment Order of Items: The law permits us to pay items (such as checks or drafts) drawn on your account in any order. To assist you in handling your account with us, we are providing you with the following information regarding how we process the items that you write.  Our policy is to process phone and online banking transfers first – in real time as they occur for the day on which they are processed. We process ATM and PIN based POS second – in real time as they occur for the day on which they are processed. We process signature based debit card transactions third – in the order in which they are received for the day on which they are processed. We process ACH debits and checks fourth – from the highest to lowest dollar amount regardless of the order in which they occur or we receive them. With this posting order of ACH debits and checks, you are at a lower risk of having an important item returned, such as a mortgage, rent or car loan payment due to insufficient funds. However, these larger items will cause your account balance to be used up faster, and if it falls below zero, you will incur bank overdrafts or returned items and related fees.
  • Transactions That May Cause or Create Overdrafts Using Your Overdraft Privilege Program Limit: 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 (Overdraft/NSF Charge), or not paying (Charge to Return Check – unpaid item), overdrafts you create by: Checks; ACH debits; MasterCard Debit Card Transactions (including Point of Sale transactions); Future‐dated or recurring online banking bill (eBillPay) payments.
  • You May Always Opt-Out: 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.
  • If You Need Help: Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need help with your financial obligations, please contact us at (617) 364‐6340 to discuss your options, or visit your local branch and speak with the Branch Manager.
  • 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 booklet. Account closures due to negative balances sustained for 55 days or greater may be reflected in your credit report.
  • 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. For example, one reason for withdrawal from the program, but not limited to, is excessive overdrafts exceeding 50 items per calendar year.


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:

  1. We have standard overdraft practices that come with your accoun
  2. 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 accoun 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 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 charges will I be charged if Nantucket Bank pays my overdraft?
Under our standard overdraft practices:

  • We will charge you a charge of $33** each time we pay an overdraft or return an item for insufficient funds. These charges are referred to as Overdraft/NSF Charge (for overdraft items) and Charge to Return Check unpaid item (for items that are returned for non-sufficient funds) fees in the Fee Schedule for Consumer 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) Overdraft/NSF Charge or Charge to Return Check – unpaid item charges that we can assess your account.
  • The Bank does not charge a checking account participating in the Overdraft Protection Program an Overdraft/NSF Charge for transactions that overdraw an account by an aggregate amount of $5.00 or less.
  • A Consecutive Day OD Fee of $30 may be assessed for any negative balance sustained for 7 business days or greater.

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 visit www.nantucketbank.com, visit one of our branch locations, or complete the Opt-in/Opt-out Form. You have the right to revoke your consent at any time by contacting the Bank.

Overdraft Opt-In/Opt-Out Form  

Revised 03/16