At times, unanticipated expenses or unforeseen problems can leave you a little short on money in your checking account.
LSB does not encourage overdrafts, but we do want to save our valued customers from additional merchant fees and possible credit damage. So, we offer three Overdraft Protection programs:
Tap into your savings to cover an overdraft. With this method of Overdraft Protection, you can elect to have your savings account automatically debited to cover an overdraft. There is a small fee for each savings transfer, and there must be sufficient funds in your associated savings account to cover the overdraft.
This Overdraft Protection option is essentially a small line of credit attached to your checking account. If you should overdraw your account, a loan is automatically drawn against the line of credit to cover the purchase. There is an annual fee to maintain a ready reserve account, and the outstanding loan balance on a Ready Reserve account will accrue finance charges.
Overdraft Privilege is a service that will provide a "safety net" when the funds in your checking account are not adequate to cover outstanding transactions. This service is not a line of credit, but a fixed Overdraft Privilege associated with your checking account to cover overdrawn items. There is no fee to have Overdraft Privilege on your checking account, but each overdrawn item will be charged a standard overdraft fee.
If your account qualifies for this, we will consider, without obligation on our part, paying items for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid. The Overdraft Privilege applies to transactions such as checks, transactions made using your checking account number, automatic bill payments, ATM transactions and everyday debit card transactions. We will not include ATM and everyday debit card transactions within our overdraft privilege without first receiving your affirmative consent to do so.
You must Opt-in for this service. Participation in overdraft privilege is not mandatory. You may opt-out of the service any time by notifying your local branch.
The following terms apply to LSB's Overdraft Privilege Product:
- $35 overdraft fee per item
- Fees are imposed for overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means
- Account balance must be brought to a positive balance within a 15 day period
- LSB reserves the right to not pay overdrafts if your account is not in good standing, you are in default on a loan or other obligation to LSB, or are subject to legal or administrative order or levy
Talk with your LSB Representative about which Overdraft Protection program is right for you.
Some accounts are not eligible for all overdraft protection solutions. Ask your LSB representative for details.