Overdraft Notice

What you need to know about Overdrafts and Overdraft Fees:

An overdraft occurs when you do not have enough money in your account to cover transactions. Alma Bank may however decide to pay the item (cover the transaction) on a discretionary basis. While Alma Bank currently does not offer an automatic Overdraft Protection Program, we do have Standard Overdraft Protection that comes with your account.

What are the standard overdraft practices that come with my account?

We do not authorize and pay overdrafts for ATM transactions. We may authorize and pay overdrafts for everyday Debit Card transactions; however NO overdraft fee would be charged for this.

At our discretion, we may pay (cover) other types of transactions that result in an overdraft. This may include: checks, preauthorized automatic debits/bill pay/ACH, loan payments or other electronic transfers. Because this is a discretionary program, it means we do not guarantee that we will always authorize and pay any type of transaction. This means that if you do not have enough money in your account, these types of transaction may be rejected.

How does Alma Bank post transactions to my account?

Alma Bank will post all credit transactions first and then, post all debit transactions in dollar amount order, from the lowest dollar amount to the highest dollar amount.

What fees will I be charged if Alma Bank pays or returns my overdraft?

• We may charge a $35.00 fee each time an overdraft occurs, whether we pay the overdraft or not.
• The fee is the same regardless of the amount of the overdraft.
• In addition the bank charges daily interest while the balance in your account remains negative because of the overdraft. Daily interest fees do not apply to consumer accounts.
• The interest rate is Prime+8% with a minimum of 12%. During the month/cycle we take each overdraft balance and multiply by the number of days it remains overdrawn. The total overdrawn balance is multiplied by the interest rate and divided by 365 (days/year).
• There is no limit on the number of overdrafts we may choose to authorize during a statement cycle; however, for consumer accounts the maximum daily fees we will charge whether we pay or return is limited to five (5).

How to minimize my overdrafts and fees?

• Check the balance in your account regularly so you know whether you have enough money in the account to cover your checks, transfers, debit card transactions, and automatic payments.
• If you see (or you are notified by the bank) that your account is overdrawn, you should make additional deposits as soon as possible to eliminate the negative balance. This will help to minimize the daily interest fees. Daily interest fees do not apply to consumer accounts.
• As an alternative you can speak to your branch representative about our Cash Reserve loan for overdraft protection. With this product (as long as you have an adequate amount available in your Cash Reserve line of credit) you can avoid the $35.00 fee charged for each overdraft.

Note: Because we do not use an automated overdraft program nor charge overdraft fees for ATM or debit card transaction, we are not required to obtain an opt-in authorization from you.

What you need to know about Unavailable or Uncollected Funds Overdrafts and Fees:

Unavailable funds occur when you do not have sufficient available or collected funds on deposit in your account to cover transactions. Alma Bank may however decide to pay the item (cover the transaction) on a discretionary basis. This may include: checks, preauthorized automatic debits/bill pay/ACH, loan payments or other electronic transfers. Because this is a discretionary program, it means we do not guarantee that we will always authorize and pay any type of transaction.

What fees will I be charged if Alma Bank pays or returns items against Unavailable or Uncollected Funds?

• We may charge a $35.00 fee each time an unavailable funds payment occurs, whether we pay the transaction or not.
• The fee is the same regardless of the amount of the unavailable or uncollected funds payment amount.
• There is no limit on the number of unavailable or uncollected funds transactions we may choose to authorize during a statement cycle; however, for consumer accounts the maximum daily fees we will charge whether we pay or return is limited to five (5).

How to minimize my Unavailable or Uncollected Funds and Fees:

• Check the balance in your account regularly so you know whether you have enough available or collected funds in the account to cover your checks, transfers, debit card transactions, and automatic payments.