At times, unanticipated expenses or unforeseen problems can leave you a little short on money in your checking account. Or, maybe you made a costly error balancing your checkbook and don't have funds to cover an outstanding check. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience.
LSB does not encourage overdrafts, but we do want to save our valued customers from additional merchant fees and possible credit damage that may result from returned checks. 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 ODP 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 ODP without first receiving your affirmative consent to do so. You must Opt-in for this service. Furthermore, you may revoke your affirmative consent to have ATM and everyday debit card transactions considered for payment without removing other items from the service. Simply inform us of your preference.
Participation in ODP is not mandatory. You may opt-out of the service any time by notifying one of our Customer Service Associates.
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
Visit with your LSB Representative about which Overdraft Protection program is right for you. There are other overdraft protection options available to you which may be less costly. Some accounts are not eligible for all overdraft protection solutions. Ask your LSB representative for details.