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                                                                              ALMA BANK

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 transactions will be rejected.

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

  • We may charge a $35 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.
  • 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; which means there is no limit to the number of overdraft fees.

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.
  • 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 fee charged for each overdraft.

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