Frequently Asked Questions
First American Bank Overdraft Protection Options

Do I have to have an overdraft protection option on my account? I doubt I will ever use it.

No, it's not mandatory, but we recommend having a back up plan of some sort. No one plans to overdraw their account, but accidents, mistakes, and emergencies happen. It's best to be prepared. Plus some of our options don't cost anything unless you use the service, so those could be good options for you.

Can I have more than one type of overdraft protection on my checking account?

No, we allow only one overdraft protection election per account. You could, however, have a Home Equity Line of Credit (HELOC) at First American Bank for other purposes, such as home improvements or other projects.

If I choose to have an account transfer, HELOC, or Moneyline overdraft protection option, can I still have the Extended Overdraft Protection Coveragesm option on my account to cover every day debit and ATM transaction overdrafts?

No. If you have one of the other overdraft protection services active on your account(s), you really won’t need the Extended Overdraft Protection Coveragesm. Provided you have funds available to you with another option (either Account Transfer, HELOC, or Moneyline), those balances will be available to you if you make a debit card purchase or make an ATM withdrawal without sufficient funds in your checking account.

If I choose to have Overdraft Protection Coveragesm (which will cover overdrafts from checks, automatic withdrawals, and recurring debit card transactions, for example, monthly debits for gym memberships, sponsorships, etc.) and Extended Overdraft Protection Coveragesm (which will cover every day debit card purchases and ATM transactions), is there a cost to have this coverage?

No, there is no fee to have the service available on your account. There is only a fee if you use the service by making a purchase that would result in a negative account balance. Then, our usual overdraft fees will apply.

If I choose NOT to have Extended Overdraft Protection Coveragesm, what will happen with my everyday debit transactions and ATM transactions?  

Nothing will change from the way that First American Bank has been treating these transactions all along. If your account has a negative balance, these transactions will be declined.

What is the fee for an overdraft transaction, and why do banks charge these fees? 

Our overdraft fee is $30 per occurrence. One of the agreements between the bank and our customers is that your account will maintain a positive balance—that deposits will be greater than withdrawals. When you spend more than you have in your account, the bank offers the convenient service of paying for those items that cause an overdraft (perhaps a check, automatic account withdrawal, or other transaction you initiate). This is an extension of credit. Each overdraft is reviewed by bank staff, so there is staff time involved.  The fee is essentially paying for the extension of credit, and is intended to encourage good account stewardship.

If I have Extended Overdraft Coveragesm on my account, will all my debit card purchases be approved?

There is a $500 limit to the amount you can overdraw your account. If you exceed this limit, the transaction that would exceed that amount would be declined. We also require that you bring your account into a positive balance promptly. Overdraft protection services are intended to be in case of mistakes or emergencies. Payment of any overdraft amount is always at the bank’s discretion.

Important Details about First American Bank Overdraft Programs

• We typically will not authorize and pay overdrafts for any transaction unless you have arranged for some form of overdraft protection program. If you have Overdraft Protection Coveragesm as your form of protection, we can pay checks, recurring debit payments, and other electronic items if you overdraft. We cannot pay your everyday debit card and ATM transactions unless you have elected to have Extended Overdraft Protection Coveragesm as well.  If we do pay one of these items when your account balance is negative, we will charge a $30 overdraft fee for each item that is paid. 
• Once an overdraft has occurred you are required to bring your account into a positive balance promptly. Overdraft coverage is intended for errors or emergencies. 
• Payment of overdrafts is at the discretion of First American Bank. We reserve the right not to pay for overdrafts. For example, we typically do not pay for overdrafts if your account is not in good standing, you are not making regular deposits, or you have had excessive overdrafts.