Overdraft Privilege
What is Overdraft Privilege?
Overdraft Privilege is a complimentary service
offered as an additional benefit to our customers for doing
business with Home Federal Bank. If you should inadvertently
overdraw your account, we have the discretion to cover your
overdrafts up to the set amount specified in our Discretionary
Overdraft Privilege Policy. This service will save you the
embarrassment and inconvenience of a returned item as well as
the fee normally charged to you by merchants for items returned
to them.
What Do I Need to Know About Overdraft
Privilege?
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Avoid using these plans as short-term loans -
they are costly forms of credit.
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If you overdraw your account, get money back
into your account as soon as possible. Remember that you need to
put enough money back into your account to cover both the amount
of your overdraft and any applicable fees.
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Even if you have one of these plans, there is
no guarantee that Home Federal Bank will cover your
checks, ATM withdrawals, debit cards and other electronic
transactions that overdraw your account.
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Good account management is the lowest cost
way to protect your hard earned money. If you need
overdraft protection every now and then, ask your banker about
the choices and services that are right for you.
How Do Overdrafts and Bounced Checks
Happen?
When you
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write a check
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withdraw money from an ATM
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use your debit card to make a purchase
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make an automatic bill payment or
electronic payment
for more than the amount in your checking
account, you will overdraw your account.
What Will Happen if I Overdraw My Account?
Should an overdraft occur, your account will
be charged the standard NSF fee for handling each item even if
paid by the discretionary overdraft privilege. Our current
NSF and Overdraft fee is $30.91 per item. This is the
same fee that Home Federal Bank charges for items drawn against
insufficient funds and returned to the payee. If multiple
items are presented against your account on the same day, each
item will be assessed the NSF fee.
How Can I Avoid Overdrafts and
Bounced-Check Fees?
The Best way to avoid overdraft and
bounced-check fees is to manage your account so you don't
overdraw it.
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Keep track of how much money you have in your
checking account by keeping your check register up-to-date.
Record all checks when you write them and other transaction when
you make them. Don't forget to subtract any fees.
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Pay special attention to your electronic
transactions. Record your ATM withdrawals and fees, debit
card purchases and online payments.
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Don't forget about automatic bill payments
you may have set up for utilities, insurance or loan payments.
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Keep an eye on your account balance.
Remember that some checks and automatic payments may not have
cleared yet.
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Review your account statements each month. Between statements you can find out which payments have cleared
and check your balance by calling your bank or checking online
or at the ATM. Be sure to find out the actual amount in
your account - your account balance not including any
funds available to you through Overdraft Privilege.
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Sometimes mistakes happen. If you do
overdraw your account, deposit money into the account as soon as
possible to cover the overdraft amount plus any fees.
Depositing money into your account can help avoid additional
overdrafts and fees.
How Can I Avoid Debt?
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Create a budget and stick with it - Your
budget should include all of your current expenses.
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Cut Expenses - Get this number by
analyzing your budget and determine where reductions can be
made (i.e. eating out or going to the movies.) Once you have
determined how much you plan to cut, use this "found" money
to pay down the balance on your debts.
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Optimize your monthly payments - pay the
maximum amount towards your highest interest rate debts.
Pay the minimum amount on all other debts.
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Set goals and priorities - determine
what's important. When you prepare to buy something
ask yourself if this purchase is in line with the priorities
you have set and will it help you reach your goal or delay
it.
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Check out the website
Http://www.quicken.com/planning/debt/ . This site
provided a free Debt Reduction Planner that allows you to
determine the amounts you should be paying towards each of
your debts and calculates the money you will save by paying
your debts in the recommended order. Additionally, the
programs tells you when each of your debts will be paid off.
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