overdraft coverage options:

overdraft privilege and overdraft protection

First Montana Bank understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

¹ Call us at 1-800-824-2692, or come by a branch to sign up or apply for these services; ² subject to credit approval.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, or line of credit you may have at First Montana Bank for a finance charge. Please note that overdraft lines of credit are subject to credit approval. Stop by your local branch to apply.

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

*If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. You can discontinue Overdraft Privilege in its entirety by contacting us at 1-800-824-2692.

You can discontinue Overdraft Privilege in its entirety by contacting us at 1-800-824-2692.

What Else You Should Know

• A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
• The $33.00 Overdraft Fee 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 Fee or a Returned Item Fee of $33.00. 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.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Fee from funds that you deposit or that are deposited into your account may call us at 800-824-2692.
• • If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, First Montana Bank will charge a Returned Item Fee each time we return the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item First Montana Bank may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.
• There is a limit of $198.00 per day (consumer accounts only) on the total Overdraft Fees per day we will charge.
• This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post credits before debits. We generally process items starting first with automatic debit items, second bank cash withdrawals, third ATM withdrawals, fourth Internet and telephone transfers, fifth Wire transfers, sixth are Debit card/POS (point of sale) transactions, seventh ACH items, eighth paper checks are posted in numerical order, ninth fees and other miscellaneous items, smallest items being processed 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 Fees or Return Item Fees assessed.
• Although under payment system rules, First Montana Bank may be obligated to pay some unauthorized debit card transactions, First Montana Bank 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 Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
• First Montana Bank authorizes and pays transactions using the available balance in your account. First Montana Bank may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. If you have not given consent for the authorization and payment of overdrafts caused by ATM and everyday debit card transactions, the available balance for these transactions is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege limit. If you have given us your prior consent to authorize and pay overdrafts for ATM and everyday debit card transactions, the Overdraft Privilege limit is included in the available balance for authorizing and paying these transactions.
• We will place a hold on your account for any authorized debit card transactions 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 Fee may be assessed.
• Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking, telephone banking, or First Montana Bank’s ATMs. Business accounts do not have access to their Overdraft Privilege limit when using our telephone banking system.
• Except as described herein, First Montana Bank 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).
• First Montana Bank may suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive for one business day.
• First Montana Bank may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
• If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
• An Overdraft Privilege limit of $500.00 may be granted to eligible consumer checking accounts when opening a new account.
• Eligible consumer checking accounts opened online may be granted an Overdraft Privilege limit of $500.00 after having been opened 60 days provided the account is in good standing.
• An Overdraft Privilege limit of $1,500.00 may be granted to eligible Business Checking accounts when opening a new account.
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Overdraft Privilege may be reduced or suspended 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 Overdraft Privilege limit increased or reinstated.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 1-800-824-2692 or visit a branch.