Overdraft Coverage Options

Life happens! National Bank understands that unexpected overdrafts occur from time to time – overdraft coverage can help.

What are my overdraft coverage options?
The choice is yours. Consider these ways to cover overdrafts:

Overdraft Cost and Service Table

Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account, cash advance, or line of credit you may have at National Bank, for a fee or finance charge. Please note that cash advances and 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. National Bank may provide you a $100 Overdraft Privilege limit for eligible checking accounts at account opening. If your consumer account remains in good standing for 35 days, this limit may be increased up to $700. If your business account remains in good standing for 60 days, this limit may be increased up to $700. You will receive a letter informing you if the Overdraft Privilege limit has been increased on your account.

Even if you have overdraft protection, such as a transfer from another account, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted.

Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, telephone banking or National Bank ATMs.

How Much Does Overdraft Privilege Cost?
When Overdraft Privilege is used, the Overdraft Item Charge of $36 will be imposed for overdrafts created by checks, ACH, point-of-sale, ATM transactions, in-person withdrawals, or by other electronic means.  If multiple items overdraw your account on the same day, each item will be assessed the appropriate fee. This is the same fee National Bank charges for items returned to the payee due to insufficient funds. 

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, National 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 National Bank may pay the item, and, if payment causes an overdraft, charge an overdraft fee.

The maximum amount of Overdraft Item Charges that we will charge to your consumer account is $216 ($432 for Commercial Accounts) per day. 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 the assessment of a fee.  The total negative balance, including all fees and charges, is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account Agreement and Disclosure.  

Overdraft Transaction Coverage Table

*To apply for extended coverage to pay overdrafts on ATM and everyday debit card transactions, call us at 800-552-4123 or complete the Consent Form and mail to:
  • P.O Box 90002, Blacksburg, VA 24062-9002.

You can request to discontinue the Overdraft Privilege service in its entirety at any time by contacting us at 800-552-4123 or by sending us an email at custassist@nbbank.com.

What else do I need to know?
  • We generally post items in the following order: 1) credits, 2) ATM and debit card transactions (low to high by dollar amount), 3) ACH debits (low to high by dollar amount, 4) checks (low to high by dollar amount); however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Non-Sufficient Fund Fees or Return Item Fees assessed.
  • A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.
  • Although under payment system rules National Bank may be obligated to pay some unauthorized debit card transactions, National Bank will not authorize debit card or ATM transactions unless there are sufficient available funds (including overdraft coverage) to cover the transactions and the amount of any fee(s).
  • Giving us your consent on your consumer account to pay everyday debit card and ATM overdrafts may result in you incurring Non-Sufficient Fund Fees for transactions that we would otherwise be required to pay without assessing a Non-Sufficient Fund Fee. However, this may allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • National Bank authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. National Bank may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.
  • National Bank will place a preauthorization 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, a Non-Sufficient Fund Fee may be assessed.
  • Except as described in this brochure, National Bank will 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).
  • We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account including any Overdraft Privilege limit. 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) if your debit card is ever suspended.
  • 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 discontinued if you default on any loan or other obligation to us, if 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 thirty-two (32) days for a minimum of one business day.

If you have any questions about Overdraft Protection or Overdraft Privilege, please contact us at (800) 552-4123 or visit your nearest National Bank branch.