Managing Balances and Overdraft Prevention

What is an overdraft?
An overdraft occurs when you spend more money than you have available in your account. Upon review, TowneBank may choose to pay an item on your behalf. If TowneBank pays this item for you, it is called an overdraft. If TowneBank does not pay this item for you, it will be returned unpaid and called a returned item.
How can I avoid overdraft fees?

If you are currently an online banking user, an easy way to avoid overdraft fees is to use notifications and low balance alerts. Signing up is easy. For Towne-Personal/Biz users simply login and select 'Additional Services' then select 'Alerts and Notifications'. If you use Towne-Biz Plus, login and navigate to the Account Activities & Reporting tab, and 'Manage Balance Alerts'.


We also offer overdraft protection transfers which link your checking account to another TowneBank deposit account. In the event of an overdraft, available funds will automatically be transferred from the linked account. Learn more from your hometown banker. Nominal fees apply. 

Or you may want to apply for a Coverline overdraft protection plan. This is a line of credit that, in the event of an overdraft, will transfer funds from your line of credit to the affected account. Subject to credit approval; applicable interest rates apply.

What is Overdraft Protection?

Overdraft protection is a tool that can help you avoid overdraft and returned item fees.  TowneBank has several options available.  *See Question 2: “How can I avoid overdraft fees?”

What is a Coverline?

A Coverline is a line of credit that, in the event of an overdraft, will transfer funds to the affected account. Coverlines are subject to credit approval and interest rates will apply.

Contact a hometown banker for more information.
Am I automatically enrolled in overdraft protection?

No. You are not automatically enrolled in overdraft protection. You must request to have your accounts linked or you can apply for a Coverline.

I am overdrawn. How did this occur?
You may overdraw your account even though the available balance appears to show sufficient funds in your account. For example, the available balance does not include: 
  • Outstanding checks and payments: Any checks you have written that have not yet cleared your bank account, or automatic or recurring payments that you previously authorized but have not yet been received by the bank for payment.
  • Debit card final transactions: In some cases, the bank receives a pre-authorization for a debit card transaction, but the final transaction may be more than the amount pre-authorized (for example, tips you add onto the transaction at restaurants). 
  • Pending debit card transactions: Certain type of card transactions, like car rentals, hotel reservations, and international transactions may be pre-authorized, but submitted for payment much later.
After reviewing your bank statement or online activity, feel free to contact a hometown banker if you need additional assistance. 

What other resources are available to help minimize overdrafts and fees?
If you are facing financial challenges, you may want to consider free or low-cost financial workshops or individualized financial counseling. Contact the National Foundation for Credit Counseling at 1-800-388-2227, or visit www.ftc.gov or www.fdic.gov for additional consumer resources. If you need additional assistance or tips, feel free to contact your local, hometown banker.
What does 'available balance' mean?

Your 'available balance' is the most current record TowneBank has regarding the funds that are available for withdrawal from your account. 

How can I keep track of my balance?
TowneBank offers members the option to receive a monthly checking statement online or in the mail.   It’s important that you review this information promptly for accuracy, and ensure that enough funds remain in your account to cover items that may be pending or not yet posted to your account.  On the back of your statement is a worksheet to help you reconcile your account.  Online banking is also a great tool for keeping track of your daily activity and balance.
What should I look for on my monthly statement?
  • Be sure to review all transactions (line-by-line) against your check register. Compare the ending balance on your statement with your check register. If the balances do not match, check for transactions in your register that are not shown on your statement. (For example, checks you've written that, as of the end of the statement period, have not yet been processed by TowneBank, or debit card purchases that have not yet been submitted for payment.)
  • Pay special attention to transactions on your statement that you may have forgotten to note on your register (such as debit card purchases or any fees). After notating and making these adjustments, your statement balance and register balance should match. 

Can online banking help me manage my accounts?
Yes, online banking is a useful and secure tool for keeping track of your pending and posted transactions. Pending items received during the day will be reflected on your online banking account and will reduce your intra-day available balance. However, during nightly processing, if you do not have sufficient funds in your account to pay incoming check and pending transactions, items may be returned or unpaid, or paid into overdraft. 

When can I make a deposit to cover incoming check, electronic, and ATM/Debit transactions?
Because TowneBank does not know about every check you’ve written or each electronic payment you’ve authorized, it is important that you keep track of your transactions.  It’s important to have sufficient funds at all times in order to prevent overdrafts.  Please do not assume that you can make a last-minute deposit Monday through Friday to cover incoming transactions.  Deadlines for same-day deposits vary at the ATM, TowneBank branches, mobile deposit, and online.  View cut-off times here.