What are overdrafts?
An overdraft happens when you don’t have enough money in your account to cover a transaction, but we go ahead and pay it anyway. When we pay overdrafts on your account, that service comes with a fee.

Understanding Your Account Balance
To better understand overdrafts, you’ll need to know the difference between your Available Balance and your Actual Balance. Your Available Balance may be less than your Actual Balance because of pending transactions. Spending more than your Available Balance can draw your account negative, and you may be charged overdraft fees.

  • Your Actual Balance is the actual amount of money in your account at any given moment in time. It may show up on your statement as “current balance” or simply “balance.” It shows items that have been fully processed and actually posted to your account. Some people say these transactions “have cleared my account." It does not include transactions that are still processing or pending.

  • Your Available Balance usually differs from your Actual Balance. Your Available Balance is the portion of your Actual Balance that is available for immediate withdrawal or to pay other debit items. It includes any pending debits and credits we have received but not yet posted to your account (for example, preauthorized debit card transactions, transfers, withdrawals, or other holds on your account). Items still in process or on hold may be referred to as “pending” in Online Banking. The Available Balance changes throughout the day as transactions occur.

What are Freedom First’s Standard Overdraft Practices?
Freedom First can cover your overdrafts in the following ways:

  • Standard Overdraft Protection for Check, ACH, and BillPay: We automatically link your primary share (savings) account to your checking account to cover overdrafts on checks, automatic bill payments, and ACH transactions for a flat fee at our discretion. You can opt-out anytime by contacting us in-person at a branch, over the phone at 540-389-0244 (local) / 866-389-0244 (toll-free), or via secure message in online banking.

  • Standard Overdraft Protection for Everyday Debit Card Purchase Transactions: If you opt-in, we may authorize and pay overdrafts on everyday debit card transactions for a fee on a tiered scale, which you can find on our Consumer Fee Schedule. To opt-in, you can contact us in-person at a branch, over the phone at 540-389-0244 (local) / 866-389-0244 (toll-free), or via secure message in online banking, and you can choose to opt-out at any time via the same methods.

  • Optional Overdraft Protection Plans: You may also choose an Overdraft Protection Plan that links another savings, checking, or loan account in order to cover your overdrafts. You can contact us for more information in-person at a branch, over the phone at 540-389-0244 (local) / 866-389-0244 (toll-free), or via secure message in online banking.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. You may contact us at any time to see the standard overdraft disclosure and agreement, or to opt out of any of the overdraft protection services connected to your account.

Here is an overview of how our Standard Overdraft Practices work:

Transaction Type • Checks and other transactions made using your checking account number
• ACH transactions (automatic bank transfers to pay bills, rent, accounts at other banks or credit unions, etc.)
• Automatic bill payments through our online BillPay service		 Everyday debit card purchase transactions
How to get overdraft protection on transactions Automatically comes with your account Must opt-in to Standard Overdraft Protection for Everyday Debit Card Purchase Transactions to activate
What happens when we let the transaction go through If the transaction puts your account in the negative, we charge you the flat overdraft fee. If you opt-in, we charge you a tiered overdraft fee when a debit card purchase puts your account in the negative.
What happens when we decline the transaction If we decline a transaction that will put your account in the negative, it will not go through, and you will be charged the flat “Non-Sufficient Funds” fee. If you opt-out, debit card purchases that would put your account in the negative will not go through and you will not be charged a fee.
Fee type Flat fee Tiered fee
Where you can find fee details On our Consumer Fee Schedule under “Overdraft Fees: Paid via check, ACH, or BillPay” On our Consumer Fee Schedule under “Overdraft Fees: Paid by Debit Card”

If you’d like to see the full overdraft disclosure and agreement, you can request one at any time by calling us at 540-389-0244 (local) / 866-389-0244 (toll-free), visiting your nearest branch, or sending us a secure message in online banking.

What are the Standard Overdraft Protections that come with my account?
Your account is automatically opted into our Standard Overdraft Protection for Check, ACH, and BillPay. You may contact us to extend these services to everyday debit card transactions. Under the Standard Overdraft Protection for Check, ACH, and BillPay, we may allow the transaction to go through at our discretion – even if it puts your account into the negative – and charge a fee.

More details about how Standard Overdraft Protection for Check, ACH, and BillPay works:

  • We will charge you a flat fee each time we pay an overdraft for automatic bill payments, checks, and other transactions made using your checking account number. Find the most up-to-date fee for this service on our Consumer Fee Schedule under “Overdraft Fees: Paid Via Check, ACH, or Bill Pay.”

  • Your overdraft transaction limit is dynamic, which means it changes based on your account activity and usage. Your accounts are reviewed every day to ensure qualifications are met. If your account has been open for at least 31 days, is in good standing, and you have had $400 or more in deposits of any type within the last 31 days, you are eligible for a total of $750 in overdraft coverage.

  • For information on Overdraft Protection Services for Everyday Debit Card Purchase Transactions, please refer to the next section.

You can opt out of our Standard Overdraft Protection for Check, ACH, and BillPay at any time by contacting us. If you opt-out of this service, overdrafts on ACH, checks, or BillPay may go through or be denied at our discretion, and you will be charged a flat Non-Sufficient Funds fee each time your account overdrafts.

What if I want you to allow overdrafts on my debit card transactions?
If you want us to authorize and pay overdrafts on debit card transactions, you will need to contact us to opt-in to the Standard Overdraft Protection for Everyday Debit Card Purchase Transactions.

If you opt-in to the Standard Overdraft Protection for Everyday Debit Purchases, we will charge you a tiered fee each time we pay an overdraft for a debit card purchase. Fees are based on the amount of the transaction and can be found on our Consumer Fee Schedule under “Overdraft Fees: Paid Via Debit Card.”

You can opt-in by calling us at 540-389-0244 (local) / 866-389-0244 (toll-free), visiting your nearest branch, or sending us a secure message in online banking.

You have the right to revoke your consent and opt-out of this service at any time by contacting us using one of the methods listed above. Please note that opting out of this service will mean that we will deny overdraft transactions on debit cards instead of allowing them through.

What happens if I opt-out of the Standard Overdraft Protection Services?
When you opt-out of our Standard Overdraft Protection Services, we will not allow the transaction to go through. For overdrafts on checks, ACH, and BillPay, you may still be charged a Non-Sufficient Funds (NSF) fee even if you have opted out of the Standard Overdraft Protection Services. For more details on our various overdraft protection services, please contact us for a copy of the agreement and disclosures.

  • If you opt-out of our Standard Overdraft Protection for Everyday Debit Transactions, we will decline your transaction and the merchant will reject your payment. You will not be charged a fee for this declined transaction.

  • If you opt-out of our Standard Overdraft Protection for Check, ACH, and BillPay, this means that if your account goes into the negative due to any of these transaction types, the transaction will be declined and/or returned and you will be charged a flat NSF fee each time we reject an item. This fee can be found on our Consumer Fee Schedule under “Non-Sufficient Funds.”


I’ve changed my mind and want to opt-out of my Overdraft Protection Services. How can I do that?
You have the right to revoke your consent and opt-out of our various Overdraft Protection Services at any time – you just need to contact us to do so. You call us at 540-389-0244 (local) / 866-389-0244 (toll-free), visit your nearest branch, or send us a secure message in online banking.

Please note that opting out of this service will mean that we will deny overdraft transactions on debit cards instead of allowing them through. Overdrafts on ACH, checks, or BillPay may go through or be denied at our discretion, and you will be charged a Non-Sufficient funds fee each time your account overdrafts.

How can I avoid overdraft fees?
You can avoid being charged future overdraft fees by ensuring your debit card purchases and ACH/check/BillPay transactions that post to your account are less than or equal to your Available Balance. Remember to carefully track your spending, be aware of your scheduled and recurring transactions, and regularly monitor your Available Balance in online/mobile banking.

You can also avoid overdraft fees on your debit card transactions by opting out of the Standard Overdraft Protection for Everyday Debit Card Purchase Transactions. This means that if you don’t have enough money in your checking account when you use your debit card, the transaction will decline.

Where can I find more information about overdrafts?
For more information, you can request an overdraft disclosure by calling us at 540-389-0244 (local) / 866-389-0244 (toll-free), visiting your nearest branch, or by sending a secure message in online banking. You are also welcome to schedule a Relationship Review to meet or have a phone conversation with one of our bankers.

What are some other ways I can avoid overdraft charges?
Here are some helpful tips to avoid overdraft charges.

  • Stay on top of your transactions. Staying informed of your account balance is the easiest way to prevent overdraft charges. You can log in to online banking or check our mobile app to see your balance. You can also record any checks you write and keep your checkbook balanced to avoid surprises.

  • Anticipate your transactions. If you know you’ll be close to an overdraft situation and you have another source of funds available, transfer the money the night before you need it. While transfers from one Freedom First account to another Freedom First account are usually immediate, it can take time for funds to be transferred to a Freedom First account from another bank or credit union. This will also make sure the money is available for any checks or electronic payments that are processed very early in the morning of the next day.

  • Avoid automatic or recurring payments. If you have a habit of forgetting about automatic payments that end up overdrawing your account, consider cancelling the automatic payments and making payments manually each month. That way you’ll be able to control exactly when the payment is made and know if there is enough money in your account. Be sure to keep a close eye on when your payment is due to avoid any missed or late payments.

  • Do not rely on “processing time” or “float time.” Electronic systems have mostly made processing time a thing of the past. When you write a paper check, often the check will be processed electronically and taken out of your account immediately. Similarly, when you swipe your debit card, funds may be taken out of your account right away. So don’t count on having a day or two after making your transaction to add funds to your account.

  • Set up another account as a draw source. You can link your other Freedom First accounts to your checking account to pay overdrafts. Money will be automatically transferred from your linked account to your checking account to cover the item. You can contact us any time to ask us about an optional Overdraft Protection Plan should you wish to link another Freedom First savings, checking, or loan account to your checking account as a draw source.

  • Build up savings or fund your checking account with automated transfers. In online/mobile banking, you can set up automated transfers between Freedom First accounts. You can set aside a portion of your paycheck to automatically go to savings so you have an emergency fund to cover overdrafts in a pinch. Or, if you already have some savings built up and need to cushion your checking account every so often, you can transfer funds from your savings back to your checking account. Just use the “transfer” button in online/mobile banking to get started!

  • Set spending limits and transaction alerts on your debit card with Card Controls. Scroll down on the main screen of mobile banking to access “Card Controls” for your Freedom First debit cards. From the Card Controls app, you can turn your card on or off with just a tap to avoid overspending! You can also set alerts for your transactions, set spend limits to avoid overdrafts, and even put limitations on where and how your card is used. Please note that Card Controls can only tell you about your debit transactions, so you will still need to keep an eye on ACH transactions in online/mobile banking.

  • Speak with an expert at the Financial Empowerment Center. If you’d like some extra guidance around your finances or simply want to ask questions in a judgment-free environment, the Financial Empowerment Center counselors are here for you at no cost. Our professionally-trained team will work with you one-on-one to help you achieve your financial goals – whatever they may be.

  • Get some extra help from GreenPath Financial Wellness. Our nonprofit partner GreenPath specializes in debt management when you’ve gotten into a difficult spot with your finances. You can speak to a professional confidentially in the language of your choice to get a handle on your debt. They also provide lots of self-guided lessons and financial education tools in English and Spanish if you prefer to explore on your own.

I still have questions about overdrafts – how can I contact you?
Our team is here to answer all your questions. You can contact us by whichever method is most convenient for you:

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