Standard Overdraft Practices

Learn how overdraft fee laws could affect you

On August 15, 2010, a federal overdraft regulation took effect, impacting ATM and debit card overdraft practices. An overdraft occurs when there are not enough funds in your account to cover a transaction and your bank still pays the transaction on your behalf.

According to our Standard Overdraft Practices, Citizens Bank may, at our discretion, authorize and pay overdrafts for the following types of transactions when you do not have adequate funds in your account:

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

However, we may not authorize and pay overdrafts for the following types of transactions unless you authorize us to do so by opting in:

• ATM transactions
• Everyday debit card transactions

Advantages of the new overdraft practices when you opt -in with Citizens Bank

Overdraft fee laws were designed to protect you, the consumer, and allow you to make sure your ATM and debit card transactions are handled the way you prefer. If you wish to include your ATM and everyday debit card transactions in the Standard Overdraft Practices on your account, you will need to opt -in. There are several benefits to opting -in to overdraft practices:

• It may provide additional funds when an unexpected expense comes up and there are no funds available in your account.
• It may allow you access to your funds in advance of a deposit becoming available later the same business day.
• Overdraft fees only apply when the bank pays an overdraft on your behalf.

If you prefer that the bank does not pay ATM and debit card overdrafts, there is no action you need to take. If you use your debit card for everyday purchases (for example, buying groceries) or ATM transactions, but do not have sufficient funds available in your account, your transaction will be declined.

Helpful ways to manage your overdrafts

Citizens Bank offers overdraft solutions, like the standard overdraft protection line or using your savings or money market account as overdraft protection, to help you get the funds you need. If you have more questions about overdraft fee regulations please speak with a Citizens Bank representative at 1-877-360-2472 or refer to our FAQ on Standard Overdraft Practices.

Helpful tools to manage your finances: