New Overdraft Rules:
Important Information for Consumers

On July 1, 2010, the new Federal Reserve Board Regulation E rule will go into effect. This rule requires consumers to opt-in, or affirmatively consent, to their financial institution's overdraft service for ATM and one-time debit card transactions before overdraft fees may be assessed on the account.

If you have not opted-in to an overdraft program (by July 1 for new customers or August 15 for existing accounts), and you do not have the funds in your account to cover an ATM or debit transaction, the transaction may be denied.

What are my options?

If your bank has a practice of paying overdrafts for ATM and everyday debit card transactions, then you will likely have the option to opt-in to their overdraft program. You will receive a notice from your bank explaining the new rule and instructing you how to opt-in, if you choose to do so..  You can also inquire at your bank to better understand the process.

What if I don't want to opt-in?

If you don't want to opt-in to an overdraft program you don't have to.  However, if you do not opt-in, your ATM or debit transactions may be denied if there are not adequate funds in your account.  If you do want overdraft protection, there are often a number of other choices available to consumers. Many banks provide the option to link your checking account to a savings other account or to link your checking account to an overdraft line of credit or credit card account.  Call or visit your bank to learn your overdraft protection options.

How can I avoid overdrafts?

The best and easiest way to avoid overdraft fees is to keep track of your transactions and account balance.  If you keep extra money in your account, you will be less likely to overdraw. Check with your bank to learn what options are available to help you monitor your account and avoid overdrafts.

Helpful Links