Overdraft Protection and Service

An overdraft occurs when the bank pays an item withdrawn from a bank account that doesn't have enough in its available balance to cover the transaction.

Overdraft protection refers to arrangements that help a customer avoid overdrafts. In contrast, overdraft service enables overdrafts to occur. At First Citizens, there are two overdraft protection options:

1. Link your savings account to your checking account. Funds may then be transferred from savings to checking to cover a transaction for which there were insufficient funds in checking.
2. Establish a Checkline Reserve account. This account is a line of credit from which funds may be transferred to checking to cover a transaction for which there were insufficient funds in checking. Customers must be credit-qualified to open a Checkline Reserve account.

Usually, there's a $10 fee on a day when funds are transferred from savings or a Checkline Reserve account to cover one or more items for which there were insufficient funds.

When we say Basic Overdraft Service, we're referring to the default overdraft preferences set up when you opened your checking account with First Citizens.

Under our Basic Overdraft Service, at our discretion, we may authorize and pay overdrafts for checks, automatic bill payments or other transactions made using your checking account number. When such an overdraft is authorized, it may result in the assessment of a $10 overdraft fee (up to a maximum of four overdraft fees per day). You can change your overdraft preferences and elect not to permit overdrafts by notifying us.

When you open a checking account, you're also asked if you would like to opt in to Basic Overdraft Service with ATM/Debit Card Coverage. This enhanced service adds coverage for ATM cash withdrawals and one-time debit card transactions. We don't authorize or pay overdrafts for these types of transactions unless you opt in to this service. If we don't authorize or pay an overdraft, your transaction will be declined. You can change your overdraft preferences for these types of transactions at any time.

Yes. In fact, layering overdraft protection on top of Basic Overdraft Service with ATM and Debit Card Coverage has a number of benefits. Not only are you more protected against balance instability and the surprise of declined transactions, but you also set the order of priority for how transfers from savings and Checkline Reserve will occur. For example, you can prioritize your overdraft protection to draw from savings first, then Checkline Reserve.

Regardless of how you prioritize your protection, your Basic Overdraft Service or Basic Overdraft Service with ATM and Debit Card Coverage will always be last. In other words, we'll first try to help you avoid an overdraft by transferring funds as available. If the necessary funds aren't available in savings or in your line of credit, then First Citizens will exercise its discretion regarding whether to permit an overdraft or decline the transaction.

If you don't enroll in this enhanced service, we won't be able to authorize one-time debit card transactions or ATM cash withdrawals unless your account has sufficient funds to cover the amount of the transaction. If your account doesn't have sufficient funds, these transactions will be declined at the point of purchase.

Yes. Your decision to enroll in Basic Overdraft Service with ATM and Debit Card Coverage can be changed at any time. Keep in mind that any previous overdraft fees you've incurred won't be waived or reimbursed as a result of such a change.

Overdraft protection and service is set on an account-by-account basis. This means you decide how you'd like overdrafts to be handled for each account you have. If you want overdraft protection on more than one bank account, then you must enroll each one.