Overdraft Protection FAQ

 

What is overdraft protection?

Overdraft protection is a service that can help you prevent returned items due to insufficient funds in your checking account. When an item is presented against an account with insufficient funds, overdraft protection may cover that item and allow payment.

Why does First Command Bank provide overdraft protection?

We encourage responsible financial management. But we recognize that there are times when you need some extra convenience and flexibility. Our overdraft protection services are designed to provide that convenience and flexibility in an affordable and responsible manner.

What types of overdraft protection do you offer?

Overdraft: Overdraft provides an Approved Overdraft Limit of $500, subject to credit approval. When an item is presented against an account with insufficient funds, overdraft protection may cover that item and allow payment. Only the amount necessary to cover the transaction will be transferred from the overdraft limit to the account. The account will be charged an overdraft fee, and you have up to 30 days to pay back the amount owed on your overdraft limit by making a deposit into your account. Overdraft Program is not available on the First Account and the Money Market Savings Account.

Coverdraft: Coverdraft automatically transfers funds directly from another First Command Bank Deposit account or First Command Bank Line of Credit when there are insufficient funds in your FCB checking account at the time of the withdrawal/transaction. There is no fee for the Coverdraft transfer. You have the option to set a predetermined amount for Coverdraft transfers (such as $250, $100, etc.). With this option, when a Coverdraft is needed the specified lump sum will transfer. This will help reduce the number of potential Coverdraft transfers and therefore limit any potential fees.

If you choose not to set a predetermined amount for Coverdraft transfers, only the amount needed to cover the transaction will be transferred for each separate transaction. Coverdraft transfers from an FCB Money Market Savings Account are included in the federal limit of six withdrawals/transfers permitted on money market savings accounts, and withdrawals exceeding the limit incur a withdrawal fee.

You can also choose not to have, or your account may not be eligible for, overdraft protection. If there is no overdraft protection on an account, when an item is presented against an account with insufficient funds, the item will be returned unpaid. You will incur an insufficient funds fee on your account. You may also be charged a fee for the returned item by the merchant.

Why do I have to update my Overdraft Program coverage for ATM and everyday debit card transactions?

Federal regulations now require that you provide specific permission to continue Overdraft Program coverage on ATM and everyday debit card transactions because a fee may be charged when an overdraft is paid on your behalf. First Command Bank will not authorize and pay overdrafts for ATM and everyday debit card transactions unless you ask us to by updating your coverage. ATM withdrawals and everyday debit card purchases will be declined if you do not have sufficient funds in your account.

What’s the cost for overdraft protection?

There’s no cost to set up overdraft protection. Under the Overdraft Program, you will be assessed an overdraft fee per item paid under the overdraft protection program. View fees. A fee may be imposed for covering overdraft created by check, an in-person withdrawal, ATM withdrawal, or other electronic means.

Under the Coverdraft program, there is no charge for this service. Coverdraft transfers from an FCB Money Market Savings Account are included in the federal limit of six withdrawals/transfers permitted on money market savings accounts, and withdrawals exceeding the limit incur a withdrawal fee. See your Depository Agreement and Disclosures booklet for further information.

When do I have to repay the overdraft?

Under the Overdraft Program, you have 30 days to pay back the amount owed on your overdraft limit by making a deposit into your account.

How will I know if I have used the Overdraft Program?

A notice will automatically generate detailing the transaction(s) and the fee(s) assessed for the items paid under the Overdraft program. eStatement users will receive an e-mail which will be sent to the e-mail address on file. If you are not an eStatement user, the notice will be mailed to the current address on file. Additionally, your statement will reflect both monthly and year-to-date totals of overdraft and insufficient funds fees charged for paid or returned items.

How can I avoid overdrafts on my account?

Ideally, just by paying a little extra attention to your account you probably won’t even need overdraft protection. Here are a few ways to avoid overdrafts on your account:

Know your current balance: You can check your balance via OnCommand online banking, MobileCommand mobile banking, PhoneCommand telephone banking, and at ATMs. Available balance has been adjusted for overdraft protection (increases balance) and pending authorized debit card/ATM transactions (lowers the balance).

Keep track of your spending: Be sure to record checks and other transactions in your register, and pay attention to your automated electronic payments. Use OnCommand and MobileCommand to check your account history so you can reconcile what has been processed with what you’ve recorded for an accurate view of the funds you may have available.

Monitor your account activity: Use Account Alerts to your email or mobile device to notify you of important account activity such as low balance, withdrawals and deposits. To sign up for Account Alerts, log into OnCommand, go to Account Services and select Account Alerts. (Note: The Account Alert service is free, but any charges for text messaging by your mobile service provider will apply.)

Review your account statements monthly: Use eStatements to quickly and easily view your account activity and balance your checkbook. Knowing your correct balance each month will help you stay ahead of any potential situations.

Users who have signed up for eStatements receive eNotices. With these in eNtoices, if you should happen to overdraft, you will receive an e-mail right away enabling you to remedy the overdraft quickly.

To sign up for eStatements, log into OnCommand, go to Accounts and select View Statement.

Schedule your bill payments: Use our free bill pay service in OnCommand or MobileCommand to schedule your bill payments and you will you avoid costly late fees from merchants. The service also allows you to have more control over when funds will be moving out of your account so you can plan better. To sign up for this free service, log into OnCommand, go to Payments and click on Activate Bill Pay.

Take action quickly to deposit funds when needed: Getting your account balance back up quickly can help you keep your costs down. You can quickly and easily transfer funds between your First Command Bank accounts using OnCommand and MobileCommand. You can also transfer funds to and from accounts at other financial institutions in OnCommand. There is no fee for online transfers, but you’ll need to set up your accounts at other financial institutions in advance. To learn more or set up transfers, log into OnCommand, go to Transfers.

With Deposits On Command, you can deposit a physical check in minutes using MobileCommand and your iPhone or Android smartphone. Deposits On Command can also be completed using OnCommand and your pc and flat-bed scanner. To learn more or register for Deposits On Command (you must qualify for this service), log into OnCommand, go to Accounts and select Deposits On Command.

How can I learn more about overdraft protection?

Please reference your Depository Agreement and Disclosures booklet for further information, and call Customer Care at 888.763.7600 if you have any questions.