What You Need to Know About Overdrafts and Overdraft Fees

What You Need to Know about Overdrafts and Overdraft Fees

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 account.

2. We also offer overdraft protection plans, such as link(s) to other deposit accounts (checking or savings), and pre-approved (Home Equity) lines of credit which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

Ø  What are the standard overdraft practices that come with my account?

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. We do authorize and pay overdrafts for the following types of transaction:

o  Checks, ACH and other transactions made using your checking account number

o  Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

o  ATM transactions

o  Every day debit card transactions

If we do not authorize and pay an overdraft, your transaction will be declined.

Ø  What fees will I be charged if Traditional Bank pays my overdraft?

Under our standard overdraft practices:

o  We will charge you a fee of up to $30 per item each time we pay an overdraft

o  Also, we will charge you $15 for every 3 consecutive business days your account is overdrawn

o  Maximum daily overdraft charge limited to five (5) items paid

o  Overdraft per item fees waived on accounts that are overdrawn $10 or less

Ø  What if I want Traditional Bank to authorize and pay overdrafts on my ATM and everyday debit card transaction?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 859-498-0414, or complete the form below and present at any Traditional Bank branch or mail to: Traditional Bank, P.O. Box 326, Mt Sterling, KY 40353. If you decide later (after you have opted-in) that you do not want us to pay overdrafts on ATM and everyday debit card transaction, you can still choose to opt-out at any time by contacting us at 859-498-0414. You can also decline the paying of overdrafts created by paper check or ACH transactions by calling the same number.

______

____ I want Traditional Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions.

Printed Name: ______Date: ______

Account Number: ______

Revised 01/2017