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 (consumer accounts only)
|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.
* Per item presented means each time an item is presented, including representment.
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 on your consumer account, ATM withdrawals 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.
You can discontinue Overdraft Privilege in its entirety by contacting us at 1-800-824-2692.
Please provide us with a valid email address if you would like to receive future communications via email rather than by postal service.
What Else You Should Know
A link to another account or line of credit may be less expensive than an
overdraft. A single larger overdraft will result in one fee, instead of
multiple smaller overdrafts. Use our mobile, internet, and telephone banking
services to track your balance. For financial education resources, please
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 Return 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
1-800-824-2692 to discontinue Overdraft Privilege.
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
and Conditions of Your Account. The total (negative) balance, including all
fees and charges, is due and payable upon demand.
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, First Montana Bank (“We”) will charge a Return Item Fee
each time it returns the item because it exceeds the Available Balance in
your account. Because we may charge a Return Item Fee 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 representment of the item. When we charge a
Return Item Fee, the charge reduces the Available Balance in your account
and may put your account into (or further into) overdraft. If, on
representment 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 Fee
For consumer accounts, there is a limit of six Overdraft Fees ($198.00) per
day we will charge.
We will not charge an Overdraft Fee if an account is overdrawn by $5.00 or
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.
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
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. If you
consent to Extended Coverage on your consumer account, it will remain on
your account until it is otherwise withdrawn.
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).
Understanding your Available Balance: Your account has two
kinds of balances: the Ledger Balance and the Available Balance.
- We authorize and pay transactions using the Available Balance.
Your Ledger 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 Ledger
Balance, less any holds due to pending debit card transactions and holds on
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 Protection.
The balance used for authorizing ATM and everyday debit card transactions on
accounts with Standard Coverage is your Available Balance plus any available
Overdraft Protection but 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 plus any available
Overdraft Protection and includes 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 and 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 online banking, mobile banking or First
Montana 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 Fee 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
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 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
If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 1-800-824-2692 or visit a branch.