How do overdrafts and bounced checks happen?

When you write a check, withdraw money from an ATM, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for more than the amount in your checking account, you overdraw your account.

North Dallas Bank has the choice to either pay the amount or not. If we pay even though you don’t have the money in your account, you will be charged an "overdraft" fee. If we return your check without paying it, you will be charged a "returned check" or "bounced check" fee. Additionally, the person or company that you wrote the check to may also charge you a “returned check” fee. Some of these businesses have arrangements with their banks to automatically send your check back to us for a second time, which often result in more fees.

How can you avoid overdraft 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. 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 transactions when you make them. Don’t forget to subtract any fees. Record your ATM withdrawals and fees, debit card purchases and online payments. Review your account statement each month. Between statements, you can find out which payments have cleared and check your balance by calling ReadyLine at (972) 716-7333 or by checking ReadyNet Internet Banking. To sign up for ReadyNet visit our website at www.ndbt.com. ReadyNet is available free of charge.

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 you avoid additional overdrafts and fees.

What is overdraft privilege?

Overdraft privilege is a plan whereby your checks do not get returned* and your ATM and debit card transactions are processed. With this plan, you still pay an overdraft fee to the bank for each item. You will avoid being charged a returned check fee by the person or company you gave the check and will stay in good standing with them.

How much does the overdraft privilege plan cost?

The bank charges it’s current overdraft fee for each item up to the dollar limit on the amount your account may be overdrawn at any one time. Please see our current product offerings and fee schedule for additional information.

What are some other ways to cover overdrafts?

North Dallas Bank has several options to cover overdrafts that may be less expensive. These are:

• Linking your savings account to your checking account at North Dallas Bank. If you overdraw your checking account the bank automatically moves money from your savings account to cover the overdraft. See our current product offerings and fee schedule for additional information regarding limits on the number of such transfers.
• Setting up an overdraft line of credit. Subject to application and approval, the bank will lend you the funds by using your line of credit to cover the overdraft. You will pay interest on this loan, but the overall costs may be less than the costs for overdraft privilege.

The choice is yours. Consider these ways to cover your overdrafts.

Ways to cover your overdrafts	Example of possible costs for each overdraft
Good Account Management	$ 0
Link to Savings Account	$ 2.00 transfer fee
Overdraft Line of Credit	16% APR
Overdraft Privilege	$ 25.00
Returned Check	$ 45.00 to $60.00 ($25.00 bank fee + $35.00 merchant fee)

These costs are only examples. See our current fee schedule for more information.

Good account management is the most affordable way to protect your hard earned money. If you need overdraft protection every now and then, ask us about the choices and services that we offer and which ones might be right for you.

*The bank still reserves the right to return any check that will overdraw the account at it's sole discretion.

For more information about Freedom Checking click here.