How Overdrafts Work
Thank you for choosing Horicon Bank for your checking account needs! An overdraft happens when you spend more money than you have available in your checking account. Instead of declining the transaction, the bank may pay it for you and your account balance becomes negative. Once new money is deposited, it automatically brings the balance back up. Depending on your account type, fees may apply when this happens. We can cover your overdraft in two different ways:
- We have standard overdraft practices that come with your account.
- We also offer overdraft protection plans, such as a link to a savings account or Personal Line of Credit, which may be less expensive than our standard overdraft practices.
Overdraft FAQ
What are the standard overdraft practices that come with my account?
- We do authorize and pay overdrafts for checks, automatic bill payments and other transactions made using your checking account.
- We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of overdraft transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if Horicon Bank pays my overdraft under the standard overdraft practices?
- We will not charge an overdraft fee if an account is overdrawn by $5 or less.
- We will charge you a fee of up to $30 each time we pay an overdraft greater than $5.
- The maximum overdraft or nonsufficient-funds fees you may incur in a day is $150.
Overdraft Protection
This feature allows customers to attach another Horicon Bank checking or savings account that would automatically move money from the “protection” account to the account that is overdrawn to cover the balance. There is no charge for this feature. Reach out to a Horicon Banker for details on how to sign up.