Overdraft Coverage Options

^**Call us at 815-796-2264, send us a secure message through digital banking, or come by a branch to sign up for this service.

*Per item presented means each time an item is presented, including re-presentment

Overdraft Transfer applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Flanagan State Bank for a fee.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Transfer, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review What Else You Should Know for other important information.

*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

If you want to discontinue Overdraft Privilege in its entirety, contact us at 815-796-2264 or send us a secure message through digital banking.

If you would like to select Extended Coverage for future transactions:

• Call us at 815-796-2264
• Visit any branch
• Send us a secure message through digital banking
• Complete the consent form found below and mail to P.O. Box 368, Flanagan, IL 61740

What Else You Should Know

• A link to another account may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our digital banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
• The $24 Overdraft Charge that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Charge or a Return Item Charge of $24. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
• There is a limit of 4 Overdraft Charges and Return Item Charges ($96 per day) we will charge you for overdrawing your account. We will not charge an Overdraft Charge if an account is overdrawn at the end of the day by less than $10.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Charge from funds that you deposit or that are deposited into your account may call us at 815-796-2264 to discontinue Overdraft Privilege.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Flanagan State Bank (“We”) may charge a Return Item Charge each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Return Item Charge each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a Return Item Charge, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Charge. We may use the terms “item” and “transaction” interchangeably.
• This describes the posting order for the purpose of determining overdrafts. Our general policy is to post items throughout the day and to post all credits before debits. ATM and debit card transactions are posted based on the date and time received, ACH transactions are posted smallest to largest, paper checks are posted in check number order, and items with no transaction date or time will be posted first; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Charges or Return Item Charges assessed.
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms & Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Charges for transactions that we would otherwise be required to pay without assessing an Overdraft Charge. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding Your Available Balance

Your account has two kinds of balances: the Actual (Current) Balance and the Available Balance

• We authorize and pay transactions using the Available Balance.
• Your Actual (Current) Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Actual (Current) Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Transfer.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance and does NOT include the Overdraft Privilege limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance, including the Overdraft Privilege limit.
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Terms & Conditions of Your Account, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through digital banking or Flanagan State Bank’s ATMs.
• We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft Charge may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

• New consumer and business checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that will be increased to $500 after 30 days in good standing for consumer accounts or to $1,000 after 60 days in good standing for business accounts.
• Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.

If you have any questions about Overdraft Transfer or Overdraft Privilege, please call us at 815-796-2264 or visit a branch.