Overdraft Protection & Overdraft Privilege

Life happens! First Southern State Bank understands that unexpected overdrafts occur from time to time - Overdraft Coverage can help.

OVERDRAFT COVERAGE OPTIONS

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

ServiceCost
Overdraft Protection
(Link to Another Deposit Account you have at First Southern State Bank)1
No fee per transfer
(Must complete the Automatic Transfer Authorization Form.)
Overdraft Privilege $32 Overdraft Fee per item

1Call us at (256)437-2171, send us an email at customerservice@fssbank.com, or come by a branch to sign up for these services.  Please note this email address is not encrypted, so do not include any account or social security numbers.

OVERDRAFT PROTECTION

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at First Southern State Bank.

OVERDRAFT PRIVILEGE

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review the "What Else You Should Know" section at the bottom of this page for other important information.


Transactions Covered with Overdraft PrivilegeStandard Coverage - No action required)Extended Coverage - Your consent required on consumer accounts*
Checks xx
ACH - Automatic Debits xx
Recurring Debit Card Payments xx
Teller Window Transactions xx
ATM Transactions  x*
Everyday Debit Card Transactions  x*

*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again.  Business accounts automatically have Extended Coverage.

To discontinue the Overdraft Privilege in its entirety, please call us at (256)437-2171, send us an email at customerservice@fssbank.com, or discuss your decision with a Customer Service Representative at a branch.  Please note this email address is not encrypted, so do not include any account or social security numbers.

What Else You Should Know

  • A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
  • The $32 Overdraft Fee that is charged if you overdraw you account more than $5, is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $32. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
  • If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, First Southern State Bank will charge a Return Item Fee each time it returns the item because it exceeds the available balance in your account.  If, on representment of the item, the available balance in your account is sufficient to cover the item, First Southern State Bank may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.  
  • For consumer accounts, there is a limit of $160 in Overdraft Fees (5) per day we will charge.  We will not charge an Overdraft Fee if a consumer account is overdrawn by $5 or less.  These exceptions do not apply to business accounts.
  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. In house checks are paid in transaction code order, checks and ACH items are paid in ascending order, while ATM and debit card transactions are posted in the order in which the items are received. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed.
  • Although under payment system rules, First Southern State Bank may be obligated to pay some unauthorized debit card transactions, First Southern State Bank will not authorize debit card or ATM transactions unless your account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit.  If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
  • First Southern State Bank authorizes and pays transactions using the available balance in your account. First Southern State Bank may place a hold on deposited funds in accordance with our Funds Availability Disclosure, as well as our Terms and Conditions, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege Limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
  • Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking, or First Southern State Bank's ATMs.
  • First Southern State Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described herein, First Southern State Bank will not pay items if the available balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
  • New consumer and business checking accounts will receive an $100 introductory Overdraft Privilege limit at account opening that will be increased to $500 after 35 days in good standing for consumer accounts or $750 after 60 days in good standing for business accounts.   
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Funds Availability Disclosure as well as our Terms and Conditions.   The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (256) 437-2171, send us an email at customerservice@fssbank.com, or discuss your decision with a Customer Service Representative at your local branch.  Please note this email address is not encrypted, so do not include any account or social security numbers.