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:
|Overdraft Protection Link to Another Account you have at First Montana Bank 1
||$5.00 fee per transfer.
|Overdraft Protection Line of Credit 1, 2
||Subject to fees + interest
||$33.00 Overdraft Fee per item
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.
Transactions Covered with Overdraft Privilege
(No action required)
(Your consent required on consumer accounts)*
If you would like to select Extended Coverage for future transactions:
- call us at 1-800-824-2692
- complete and submit the online consent form found at www.firstmontanabank.com
- visit any branch
- complete the enclosed consent form and mail it to us at P O Box 1550 Libby MT 59923 or
bring it by any of our locations
|ACH – Automatic Debits
|Recurring Debit Card Payments
|Online Bill Pay Items
|Internet Banking Transfers
|Teller Window Transactions
|Everyday Debit Card Transactions
*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
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
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
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
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.