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At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned or a transaction declined due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience. At State Bank, we do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check or other recurring debit is returned. That’s why we provide Overdraft Privilege, a special overdraft service for State Bank’s customers.


What is Overdraft Privilege?

Overdraft Privilege is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit.

Your Overdraft Privilege limit may be available for checks and other transactions made using your checking account number, automatic bill payments, and recurring debit card payments. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.


What does my Overdraft Privilege cost?

There is no additional cost associated with this privilege unless you use it. You will be assessed a Paid Item charge of $35 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction, or a recurring debit card payment. Also, automatically on business accounts, and if you requested us to do so on personal accounts, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases for a Paid Item  Charge of $35.

For example, three Paid Items in one day will result in $105 in Paid Item charges. To help you manage your account, the total charges you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.


How does Overdraft Privilege work?

As long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy.

For Overdraft Privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 32 calendar days (including the payment of all bank charges) for a minimum of one business day; (2) are not in default on any loan other obligation to us; and (3) there are no legal orders, levies or liens against your account.

Please note that the amount of the overdraft plus our Paid Item charge of $35 for each item will be deducted from your overdraft limit. If the item is returned, the Returned Item charge of $35 will be deducted from your account. No interest will be charged on the overdraft balance.

Please refer to the What Else You Should Know section of this document for additional details.


How do I know when I use the Overdraft Privilege limit?

You will receive an overdraft notice each time items are paid, including charges. You will need to subtract the total charges when balancing your checkbook.


What is my Overdraft Privilege limit?

If I have two checking accounts, can I get Overdraft Privilege on both?

Locate your account type below and make note of the corresponding limit. If you have multiple accounts for your household, you may have a limit on all eligible accounts.

Basic Checking $500
50+ Free Interest Checking $500
Personal eChecking $500
Premium Select Checking $1,000
Business eChecking $1,000
Micro Business Checking $1,000
Business Checking $1,000


What if I go beyond my Overdraft Privilege limit?

Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned to the payee. The Returned Item charge of $35 will be charged per item and assessed to your account. An OD/NSF notice will be sent to notify you of items paid and/or returned.


How quickly must I bring my account positive?

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and you must do so within 32 calendar days for a minimum of one business day. If you are not able to do so, you will receive a letter from State Bank informing you that your Overdraft Privilege limit has been suspended and additional items will be returned. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again after you bring your account to a positive end-of-day balance.


What if I am having trouble repaying my Overdraft Privilege or use it frequently?

Please contact us at 800.414.4177 if: (1) you do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Overdraft Privilege more often than you intend; or (3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.

Following regulatory guidance, we will contact you if you are paying multiple Paid Item charges

(i.e., more than six charges in a rolling 12-month period), to discuss possible alternatives to Overdraft Privilege that may better meet your short-term credit needs. In the event you ask us to stop contacting you because you have determined Overdraft Privilege is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Overdraft Privilege is still the most appropriate option available to you for covering your short-term credit needs.


How soon can I use my Overdraft Privilege?

If you are a new customer, and you have made a deposit, you may use the Overdraft Privilege service one day after account opening. This is provided you have maintained satisfactory activity in the account, including regular deposits, consistent with our internal standards for new account types that may offer Overdraft Privilege. You may continue to use Overdraft Privilege provided you maintain the account in “good standing” as defined in this brochure.


What are some of the ways I can access my Overdraft Privilege limit?

The types of transactions coverage by Overdraft Privilege depend on the coverage selected. The chart below shows the different ways you can access your Overdraft Privilege limit.

Access Points

Standard Coverage

(No Action Required)

Extended Coverage

(Your Consent Required**)




Writing a Check



Debit Card (recurring)



Debit Card (everyday)



ATM Withdrawal



ACH – Auto Debit



Online Banking



Telephone Banking



**With the exception of business accounts, the Overdraft Privilege service will be made available for ATM or everyday debit card transactions only upon your request. Call 800.414.4177 or visit one of our branches to request your ATM and debit card coverage.


What are some other ways I can cover overdrafts at State Bank?

The best way to avoid overdrafts and charges is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly and manage your finances responsibly. However, if a mistake occurs, State Bank offers additional ways to cover overdrafts in addition to Overdraft Privilege.

Ways to Cover Overdrafts at State Bank

Example of Associated Charges

Good account management


Overdraft Protection link to another State Bank account

$10 daily sweep transaction charge*

Overdraft Privilege

$35 Paid Item charge*

*This information is effective as of April 2018 and is provided as examples. Please ask us about our current specific products, rates and charges.


What if I do not want to have Overdraft Privilege on my account?

If you would like to have this service removed from your account, please call 800.414.4177.


Overdraft Coverage - 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 charge, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit

• The $35 Paid Item charge that is charged if you overdraw your account more than $10 is the same as the charge 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 Paid Item charge or a Return Item Charge of $35. All 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 charge.

• For all accounts, there is a limit of 5 Paid Item charges (5) per day we will charge. We will not charge a Paid Item charge if an account is overdrawn by $10 or less.

• In the normal course of business, we generally pay electronic transactions first and then checks and other items in serial number order, or if no serial number is visible, from lowest amount to highest amount, per the bank’s policy. 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. Also, please be aware that the order of item payment may create multiple overdraft items during a single banking day for which you will be charged our Paid Item charge of $35 for each overdraft item paid.

• Although under payment system rules, State Bank and Trust Company may be obligated to pay some unauthorized debit card transactions, State Bank and Trust Company will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any charge(s).

• Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Paid Item charges for transactions that we would otherwise be required to pay without assessing a Paid Item charge. However, this would 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 balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until you otherwise withdraw it.

• State Bank and Trust Company authorizes and pays transactions using the available balance in your account. State Bank and Trust Company may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, 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 State Bank and Trust Company’s ATMs.

• State Bank and Trust Company 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, a Paid Item charge may be assessed.

• Except as described herein, State Bank and Trust Company 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 charge(s). 

• 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, 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 Overdraft Privilege reinstated.

• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and charge amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please visit a branch or call the Client Care team.