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Overdraft Protection

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Q: What are Overdrafts and Overdraft Fees?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two general ways, or any combination of the following:

  • Overdraft Protection Plans
    • Transfer Service
    allows you to transfer from one of your other Colony Bank deposit accounts to your primary checking account. In the event of an overdraft, an automatic transfer will be generated to cover the amount needed to bring the account to a positive balance. The charge for this service is $10 per transfer.
    • Freedom Line of Credit is a line-of-credit attached to your checking account. In the event of an overdraft, funds are transferred from the available credit balance to cover the deficit balance in the account. Interest accrues based on the outstanding balance of the line-of-credit. A loan application and credit approval is required for this service.
  • Standard Overdraft Practices - Overdraft Privilege Program (ODP) is a discretionary service limited to the bank approved Overdraft Limit for eligible accounts. Be advised that each item paid under the ODP service will incur an overdraft fee. We will pay the following types of overdraft items on your checking account up to the total Overdraft Limit of $800:

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

    We cannot authorize overdrafts and charge a fee for the following types of transactions (unless you ask us to by choosing OPT-IN):

    • ATM transactions
    • Everyday debit card transactions

    If you do not authorize us to pay an overdraft for everyday debit card and ATM transactions, your transaction will be declined at the time it is presented if the transaction exceeds your available balance.

Q: What are my choices?

You have three options:
• Enroll in an Overdraft Protection Plan;
• Utilize our Standard Overdraft Practices, for eligible accounts;
• Recognize that your account is not covered by the prior options and overdraft items are subject to be returned unpaid and will incur a return item fee.

Q: What fees will I be charged if Colony Bank pays my overdraft?

Under our standard overdraft practices, we may authorize checks and transactions using your checking account number, and automatic bill payments:
• We will charge you an overdraft fee each time we pay an overdraft.
• There is a limit of six (6) overdraft fees per business day that we can charge you for overdrawing your account.

Q: What if I want Colony Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize overdrafts and charge a fee on ATM and everyday debit card transactions, you must either complete and submit the
 Overdraft Protection Form, call us, or stop in to see us.

Q: What happens if I do nothing?

If you do nothing, we will decline debit card purchases and ATM transactions if they exceed the available balance in your account. You can change your mind, however, and OPT-IN at any time, which will allow us to charge a fee for authorizing overdraft transactions