Overdraft Privilege

(A Discretionary Overdraft Service)

Fifth District Savings Bank (the Bank, “we”, “us”, or “our") offers Overdraft Privilege Service. If your account qualifies for this service, we will consider, without obligation on our part, paying those items for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid. This document explains how this service works.

Transactions that May Qualify for Overdraft Privilege

An overdraft occurs when you do not have enough money in your account to cover a transaction. Although there are many reasons why your account might become overdrawn, most overdrafts result from the following:

You write a check, swipe your debit card or initiate an electronic funds transfer in an amount that exceeds the amount of funds available in your account.
You deposit a check or other item into your account and the item is returned unpaid, which causes a negative balance in your account once your balance is reduced by the amount of the returned check.
You have inadequate funds in your account when we access a fee or service charge.
You initiate a transaction before funds deposited into your account are “available” according to our Funds Availability Policy.

Overdraft Privilege applies to a variety of transactions, including checks, teller withdrawals, automatic withdrawals or bill payments, and recurring debit card payments. If you authorize us to do so (opt in), Overdraft Privilege will also apply to ATM transactions and everyday debit card transactions.

We retain the right to decline to pay any item. This means we can refuse to pay any overdraft for any reason. Even if we have paid an overdraft item in the past, we are under no obligation to pay future overdrafts. If we do not pay an item, your transaction will be returned, and you will be charged an NSF Return Item Fee of $32 each time an item is returned.

Overdraft Privilege Requirements

As long as you maintain your account in “good standing,” we may approve your overdraft items within your unused 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 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; (3) have no legal orders, levies or liens against your account; and (4) your loan with Fifth District is not 60 or more days past due.

We limit the number of accounts eligible for overdraft privilege to one account per household, and we reserve the right to discontinue this service at any time without prior notice.

Balance Used for Overdraft Privilege

We authorize and pay transactions using the available balance in your account. The available balance reflects deposits and transactions that have posted to your account, such as checks you have written, and transactions that have been authorized but not yet posted to your account, including deposit holds and holds on debit transactions that have been authorized but not yet posted. Your available balance is provided to you upon request and through FDSB Connected and Telephone Banking. Your available balance does not include your Overdraft Privilege limit.

Overdraft Privilege Cost & Repayment

There is no additional cost associated with Overdraft Privilege unless you use it. If you do use Overdraft Privilege, we will charge you our OD Paid Item Fee of $32 for each overdraft we pay. If multiple items overdraw your account in the same day, you will be charged our OD Paid Item Fee of $32 for each overdraft item paid. For example, three items paid in one day will result in $96 in ODP Paid Item Fees. There is a limit of five OD Paid Item Fees ($160) per day we will charge you for overdrawing your account. In addition, you will not be charged an OD Paid Item Fee for overdraft items paid that are less than $5 or for when overdraft paid items cause your account’s end of day balance to be overdrawn by less than $5.

Our general policy is to pay ATM/debit card transactions first and then all other items from lowest to highest dollar amount.

We will send you an OD/NSF Notice to notify you of items that have been paid and/or returned. The notices will include fees associated with the paid and/returned items. You will need to subtract the total fees when balancing your checkbook.

We have no obligation to notify you before we pay or return any item. The amount of any overdrafts, including our fees, are due and payable immediately or on demand. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.

Please contact us at (504) 363-6513 if you do not believe you will be able to bring your account to a positive end-of-day balance within 30 calendar days, find that you are using Overdraft Privilege more often than you intended, or you don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.

Overdraft Privilege Suspension

We may suspend your Overdraft Privilege limit if you do not bring your account to a positive end-of-day balance within 30 calendar days. You will receive a letter informing you that your Overdraft Privilege limit has been suspended and additional items will be returned. Unless you tell us differently or request Overdraft Privilege be removed from your account, your limit will be reinstated the first business day after you bring your account to a positive end-of-day balance.

Excessive Usage of Overdraft Privilege

We monitor customer accounts for excessive use. If you overdraw your account more than six times in a rolling twelve-month period, you will be contacted to discuss alternatives to Overdraft Privilege. If you ask us to stop contacting you because you feel Overdraft Privilege is suitable for your needs, we will honor your wishes. However, if we notice there is a substantial increase in your overdraft usage, we may contact your again to ensure Overdraft Privilege is still the best option for you.

Overdraft Privilege Limits

An Overdraft Privilege limit of $100 is granted on the next business day after account opening. If you maintain satisfactory activity in the account, including regular deposits, consistent with our internal standards for new accounts, your limit may be increased to the applicable limit for your account type.

$300 Limit $500 Limit

Totally Free Checking Premium Interest Checking

Easy Interest Checking NOW Checking

Fabulous 50 Checking Homeowner’s Checking

Economy Checking Senior Checking

We will advise you 30 or more days after your account is opened if your limit will be increased. Overdraft Privilege will continue to be available provided your account remains in “good standing” as defined in this document.

Normally, we will not approve an overdraft for you in excess of the predetermined limit assigned to your account. So as not to exceed your limit, please remember that the amount of the overdraft plus our OD Paid Item Fee of $32 each time an item is returned will be deducted from the Overdraft Privilege limit. Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned to the payee. You will be charged an NSF Returned Item Fee of $32 each time an item is returned. Returned items may be presented for payment by the payee or their financial institution multiple times, which may result in an NSF Returned Item Fee each time the item is returned.

Overdraft Privilege Access Points

The chart below shows the different ways you can access your Overdraft Privilege limit. If you would like to make Overdraft Privilege available for ATM withdrawals and everyday debit card transactions, please visit one of our branches or call us at (504) 363-6513.

Access Point	Basic Coverage (No Action Required)	Enhanced Coverage (Opt-In Required)
Teller	X	X
Checks	X	X
Recurring Debit Card Payments	X	X
ACH - Automatic Debits	X	X
Bill Pay	X	X
ATM Withdrawals		X
Everyday Debit Card Transactions		X

Overdraft Privilege Alternatives

Good account management is the best way to avoid overdrafts. Use FDSB Connected and telephone banking to track your balance and review transactions that have cleared your account. Be sure to enter all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly, and manage your finances responsibly. Other financial education resources may be found by visiting https://www.fdic.gov/moneysmart and https://www.consumerfinance.gov/.

Fifth District Savings Bank offers several ways to cover overdrafts in addition to Overdraft Privilege.

Ways to Cover Overdrafts at Fifth District Savings Bank	Examples of Associated Rates and Fees*
Good account management	$0
Link to savings account (sweep)	$10 Sweep Fee for each transfer
Overdraft Privilege	OD Paid Item Fee of $32 for each item

* This information is effective as of December 2023 and is provided as an example. Please ask us about our current specific products, rates and fees.

Overdraft Privilege Removal

Participation in Overdraft Privilege is not mandatory. You may opt out of this service at any time by calling (504) 363-6513. Additionally, you may revoke your previous authorization to have ATM and everyday debit card transactions considered for payment under Overdraft Privilege without removing other items from the service. Simply inform us of your preference.

While you may opt out of the privilege at any time, you are responsible for any overdrawn balances at the time of opting out.