------
------
header

Your Overdraft Questions Answered

header
  Overdraft Services   Managing Your Checking Account Your Overdraft Questions Answered

Your Overdraft Questions Answered

What is an overdraft?
An overdraft occurs when you have insufficient or uncollected funds in your account to cover a transaction, but the bank allows it to be paid anyway. If we pay an overdraft on your account, you must immediately repay us.

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.

What are uncollected funds?
This term refers to funds you have deposited into your account that are not yet available to you for withdrawal. Accessing funds that have been deposited but are not available is considered drawing on "uncollected funds."

  • When making a deposit, it is important to verify that your funds are available before you make a transaction that my overdraw your account and incur a fee.
  • If you make a deposit at the branch or ATM, your funds may be available the next business day. There are exceptions to keep in mind in regards to funds availability.*

*Please review our Funds Availability Policy for full details.

How is an overdraft created?
Overdrafts may be created by check, in-person withdrawals, debit card transactions or other electronic means.

How does NBT Bank cover overdrafts?
We cover overdrafts in two different ways:

What are your standard overdraft practices?
We authorize and pay overdrafts on the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to by “opting in.”

  • ATM transactions
  • Everyday debit card transactions

Return to top

How do I opt-in for overdraft coverage?
If you would like to opt-in and authorize us to pay overdrafts on ATM and everyday debit card transactions, please contact us at 1-800-628-2265 or by visiting your local NBT Bank office. You can also opt-in by completing our Opt-in Form and mailing it to the bank at:

NBT Bank Customer Service
P.O. Box 351
Norwich, NY 13815

What overdraft fees will be assessed if there’s not enough money to cover the transactions on the account?

  • We will charge you $25 per item for the first and second occurrence; $30 per item for the third, fourth and fifth occurrence; and $35 per item for the sixth occurrence or higher.
  • An occurrence is defined as a single day in which an account has insufficient funds to cover an item, regardless of the number of items presented that day.
  • We will also charge you a fee of $5 for each day your account remains overdrawn starting on the eighth day. We will not charge you this fee if you are overdrawn by $35 or less.
  • The maximum number of overdraft fees that can be assessed to an account on a single business day will be limited to ten.
  • For uncollected funds, there is a $5 grace amount we will allow before your account is charged overdraft fees.
  • An overdraft fee will not be assessed when a checking account is overdrawn by $5 of less.

Return to top