Overdraft Privilege Disclosure | Citizens Bank (2023)

It is important for you to use your checking account responsibly and to never intentionally overdraw your account. However, we realize that financial shortfalls happen from time to time and we have options available for you. An insufficient balance can result from several events such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you; (3) the return of unpaid items deposited by you; (4) bank service charges; or (5) the deposit of items which, according to the bank’s Funds Availability Policy, are treated as not yet available or finally paid. Whether your overdrafts will be paid is discretionary and Citizens Bank reserves the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. The Non-Sufficient Funds fee applies to overdrafts created by check, in-person withdrawal, or other electronic means as applicable. As a benefit to our customers, we offer these overdraft services in the event that you overdraw your checking account.

Overdraft Services

Transfer from another account

If you have other accounts with us, you can authorize us to transfer the funds needed to cover your overdraft. This authorization must be written and on file with Citizens Bank before any overdraft(s) will be covered. There is a $5 transfer fee charged for every transfer occurrence. Transfers from another account are limited to 6 transfers per month.

Overdraft Privilege

Overdraft Privilege is a service we add to your checking account, subject to the eligibility criteria as explained below. The $500.00 Overdraft Privilege should not be viewed as an encouragement to overdraw your account. As always, we encourage you to manage your finances responsibly. With the Overdraft Privilege we will generally pay your overdraft items up to $500.00; however, whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. You will be charged our standard Non-Sufficient Fund (NSF) fee of $32.75 for each overdraft (paid or returned). The Non-Sufficient Fund fee will appear on your statement as either (1) NSF/Paid Item Fee; (2) NSF/Return Item Fee; or (3) AOD Paid Item Fee. More than one overdraft fee may be charged against the account per day, depending on the number of items presented, and other withdrawals made from your account. Also, please be aware that the order of item payment may create multiple overdrafts during a single banking day. Both the amount of the overdraft items and all applicable fees, including but not limited to the overdraft fees, are included in this limit. All deposits to overdrawn accounts are applied to the negative balance.

Assuming the account does not have overdraft privilege, and if more than one item is presented against insufficient funds in your account on the same day, an overdraft fee is charged for each item paid/returned.

The amount of Overdraft Privilege still available in this example is $84.50.

We may refuse to pay an overdraft for you at any time even though we may have previously paid overdrafts for you.
You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdraft plus our standard Non-Sufficient Fund fee of $32.75 that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one owner on the signature card, each owner and agent, if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdraft plus our standard Non-Sufficient Fund fee of $32.75.

Overdraft Privilege Eligibility

Eligibility is at the sole discretion of the Bank and is based on you managing your checking account in a responsible manner. Your Overdraft Privilege may be suspended or permanently removed based on the following criteria:

  • You do not bring your account to a positive balance within 30 days of becoming overdrawn
  • You have an account that has been opened less than 60 days
  • Your account type is not eligible
  • You are more than 30 days past due on any Bank loan or delinquent on any other obligation to the Bank
  • You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding
  • You have an outstanding balance on an Overdraft Repayment Plan
  • Your account is being reviewed for fraudulent activity or transactions
  • The primary account owner is less than 18 years old
  • A ChexSystems or any other negative indicator has been reported to us
  • Your account is classified as inactive (dormant)
  • You have an unresolved prior loss with the Bank
  • We do not have a valid address for you
  • We believe you are not managing your account in a responsible manner which may harm you or us

Transactions Eligible for Overdraft Privilege

Overdraft Privilege will be available for all checks written, in-person withdrawals, ACH transactions, preauthorized automatic transfers, internet banking and telephone banking. Overdraft Privilege will not be available for ATM transactions. Overdraft Privilege will not be available for everyday debit card transactions unless you authorize the bank by completing a Consent Form for Overdraft Services.

Balance Reporting

Please note your $500.00 Overdraft Privilege will not be reflected in your balance provided by a teller, at the ATM or through online banking or telephone banking.

Overdraft Privilege Opt Out

If you do not want to have Overdraft Privilege, simply contact us and we will provide you an Overdraft Privilege Opt-Out Form to remove this benefit from your account. It is important for you to consider that by opting out you are instructing us to return unpaid all items presented against insufficient funds. If you opt-out, you will still be charged our $32.75 returned item fee. Customers who receive Social Security, federal direct deposit, or any other entitlement benefit must opt-out if they do not want the Bank to apply those funds to pay an overdraft.

Payment Order of Items

The payments you authorize against your account may not be presented to us in the order in which you authorized them. The order in which items are presented may affect the amount of overdraft fees you incur. Generally, items in which the bank is directly liable (such as cashed checks, official check purchases, debit card purchases, and ATM withdrawals) are paid first. We then pay any items that were submitted electronically, such as ACH items, preauthorized automatic transfers, telephone-initiated transfers and any other electronic transfers. Finally, we pay the remaining items based on lowest dollar amount to highest dollar amount. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account.

NOTE: Please be aware that holds placed on your account for pending electronic transactions, such as hotel or rental car deposits and authorized point-of-sale debit card transactions (pay at the pump, etc.), reduce your available balance and may cause your account to become overdrawn.

Excessive Use

We monitor consumer accounts for chronic or excessive use. If you overdraw your account more than six times in a rolling twelve month period you will be contacted to discuss alternatives and/or continued use of Overdraft Privilege.

Financial Education

The Bank believes that financial literacy and education help consumers make informed decisions. Heightened awareness of personal financial responsibility helps consumers realize the benefits of responsible money management, understanding the credit process and the availability of help if problems occur. www.MyMoney.gov is the federal government’s website that serves as the one-stop shop for federal financial literacy and education programs, grants and other information. To request a personal financial toolkit, call 1-888-MyMoney. The FDIC’s “Money Smart” program may also be accessed at www.fdic.gov/consumers/consumer/moneysmart/adult.html in which you may view a module on maintaining a checking account and avoiding overdrafts.

Account Agreement

Your account agreement describes the duties, obligations, and rights of
depositors, authorized signatories and the Bank with regard to your deposit accounts. That account
agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not
directly addressed by this disclosure. Your account agreement and this disclosure shall be construed
so as to minimize conflicts between them.


The Bank’s forbearance from, or delay in, exercising any of the Bank’s rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Overdraft Privilege disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank’s rights, remedies or privileges.

Remedy: You and the Bank agree that the exclusive remedy and forum for all disputes arising out of the Overdraft Privilege or your or Bank’s performance there under, except for matters you or Bank take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.

Effective Date

All information listed in this disclosure is effective as of May 1, 2019.

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