overdraft coverage options:
overdraft privilege and overdraft protection
Life happens! 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:
Service |
Cost |
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 |
Overdraft Privilege |
$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
|
Standard Coverage
(No action required)
|
Extended Coverage
(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
|
Checks |
|
|
ACH – Automatic Debits |
|
|
Recurring Debit Card Payments |
|
|
Online Bill Pay Items |
|
|
Internet Banking Transfers |
|
|
Telephone Banking |
|
|
Teller Window Transactions |
|
|
ATM Withdrawals |
|
* |
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
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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.
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The $33.00 Overdraft Fee that is charged if you overdraw your account more than $1.00 this is the same fee amount that is charged if a check is returned as unpaid. If your account is overdrawn
by $1.00 or less there is no fee. 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.
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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 it returns 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.
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There is a limit of $198.00 per day (consumer accounts only) on the total Overdraft Fees per day we will charge.
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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.
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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 there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
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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 that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your
account until you otherwise withdraw it.
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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. The available balance for ATM and
everyday debit card transactions on accounts with Standard Coverage 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. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit
card transactions.
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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.
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First Montana Bank 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.
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Except as described herein, First Montana Bank will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount
of any fee(s).
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First Montana Bank may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Overdraft Privilege limit (as described herein). Debit
cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact
us.
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First Montana Bank may also 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.
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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.
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If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and 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).
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An Overdraft Privilege limit of $500.00 may be granted to eligible consumer checking accounts when opening a new account.
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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.
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An Overdraft Privilege limit of $1,500.00 may be granted to eligible Business checking accounts when opening a new account.
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Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
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Overdraft Privilege may be discontinued 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 Overdraft Privilege reinstated.
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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.