Overdraft Privilege and Overdraft Protection

Overdraft Coverage Options

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

¹Call us at 800.355.0641, visit a branch, or enroll in these services through One Wallet Online and Mobile Banking by selecting eServices, Secure Forms, and clicking on the Overdraft Transfer Link.

²Subject to credit approval.

³Available only on consumer accounts.

⁴Fee is only applicable to business products.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Independent Bank for a finance charge. Please note that overdraft lines of credit are subject to credit approval.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit* for a fee in order 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.

*New accounts opened within the past 30 calendar days have an introductory limit of $100.00. After 30 calendar days, the Overdraft Privilege limit is $1,000 for eligible business accounts and $600 for eligible personal accounts.

If you would like to select Extended Coverage for future transactions:

• Call us at 800.355.0641
• Visit any branch
• Complete a consent form and mail it to: 230 W Main St. Ionia, MI 48846

**If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Overdraft Privilege.

If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Privilege in its entirety by contacting us at 800.355.0641 or visiting a branch.

What Else You Should Know

• A link to another account or a line of credit is 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 mymoney.gov.
  
  
• The $34 Overdraft Fee is the same fee amount that is charged if a check 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 Fee of $34. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
  
  
• If your account balance remains overdrawn for longer than 5 business days, including Saturday, we will charge your account a daily overdraft fee of $6 for each of the consecutive business days the account remains overdrawn, beginning with day 6.
  
  
• For consumer accounts, there is a limit of 5 Overdraft Fees ($170) per day we will charge. For business accounts, there is a limit of 10 Overdraft Fees ($340) per day we will charge. We will not charge an Overdraft Fee if a transaction for $5 or less overdraws your account. Overdraft fees could be assessed on a Saturday.
  
  
• Posting order is the order in which deposits and withdrawals are applied to your account. Generally, we post items as they are received. Most items are posted immediately (real-time) as they are presented. This includes credit/debit transactions performed at an Independent Bank branch and electronic transactions such as: ATM transactions, debit card transactions, mobile/online banking transactions, pre-authorized transactions and wires. Items presented via ACH (direct deposits and debits) are posted as received during multiple daily presentments. Checks transacted at other financial institutions will be posted as received. In some cases, authorization is provided at the time of conducting a transaction with your debit card, but the transaction does not post to your account until days after the initial authorization. As an example, a debit card transaction may appear as “pending” in online or mobile banking during the day and affect your available balance. When authorization is provided to a merchant we may reserve or place a hold on your available balance, typically for up to seven calendar days or until the transaction posts to your account, for the amount of the requested authorization. There may be delays of several days between the date of the authorization and the date the transaction is presented for payment. The transaction may post to your account after the authorization hold has expired, which could potentially result in an overdraft, even if you are opted out of ATM and one-time debits. Funds authorizations are based on available balance at the time a transaction is authorized. Fee assessments (including Non-Sufficient Fund changes) are based on the actual (ledger) balance at the time a transaction posts to your account. Holds on funds may also impact funds availability and fee assessments.
  
  
• In some instances, debit card transaction authorization holds may exceed the amount of the transaction (for example, gas station, hotel, and rental car transactions). When the hold ends and the transaction settles, your account will update to reflect the available balance. If your account is overdrawn when the transaction settles, an overdraft may occur and an Overdraft Fee(s) may also be assessed, excluding debit card transactions previously authorized for accounts opted out of ATM and one-time debits.
  
  
• Although under payment system rules, Independent Bank may be obligated to pay some unauthorized debit card transactions, Independent Bank will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  
  
• Independent Bank authorizes and pays transactions using the available balance in your account. We may place a hold on deposited items in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount of your available balance. On accounts with Standard Coverage, the available balance for authorizing ATM and everyday debit card transactions is the current balance, less any holds on certain deposited items pursuant to Regulation CC, and pending debit card transactions, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege limit. On accounts with Extended Coverage, the available balance for authorizing ATM and everyday debit card transactions is the current balance, less any holds on certain deposited items pursuant to Regulation CC, and pending debit card transactions, plus any available Overdraft Protection and the applicable Overdraft Privilege limit.
  
  
• Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking, or Independent Bank’s
  
  
• Except as described in this letter, Independent Bank may not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
  
  
• Independent Bank may suspend your debit card if your account is overdrawn more than thirty (30) consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
  
  
• If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
  
  
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time with prior notice (with the exception of fraudulent activity). Overdraft Privilege is not available on accounts for which a minor is the tax reported owner.
  
  
• Overdraft Privilege may be discontinued if you default on any loan (30 days or more past due, bankruptcy) or other obligation to us, your account becomes subject to any legal or administrative order, garnishment or levy, if you fail to maintain this account in good standing by not bringing your account to a positive balance within 30 calendar days for a minimum of one business day, or if another deposit account on which you are the tax reported owner has been charged off.
  
  
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  
  
• New accounts opened within the past 30 calendar days have an introductory limit of $100.00. After 30 calendar days, the Overdraft Privilege limit is $1,000 for eligible business accounts and $600 for eligible personal accounts.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 800.355.0641 or visit any branch.