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Overdraft Reserve

It's A Privilege For Our Checking Account Clients

Unanticipated expenses or mathematical errors can leave your checking account short of cash. In addition, having a check returned due to insufficient funds is terribly embarrassing. We have created Overdraft Reserve as a special privilege specifically for Peoples Bank of Kankakee County checking account clients whose accounts are in good standing.

There is absolutely no charge for this service unless you use it. Your Overdraft Reserve limit will automatically be assigned to you after your account has been open for 30 days, if your account is in good standing.

Opt-In

How Does It Work?

After your account has been open for 30 days and as long as you maintain your Peoples Bank of Kankakee County checking account in good standing, at our discretion, we may honor your overdrafts up to the limit assigned.

Whether we pay or return a Non-Sufficient Funds item, a flat-per item handling fee of $25.00 will be charged to your account as a Non-Sufficient Funds or Overdraft (NSF/OD) Charge. The maximum daily per item handling fee for items paid using the Overdraft Privilege Program is $100.00 per day. No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $10 or less. Also, a $5 per day fee will be charged beginning the 4th consecutive business day your account is overdrawn. We will notify you by mail when an overdraft occurs. The notice will reflect the item(s) paid, as well as the bank's charge for the overdraft item(s). It is important to subtract the fees from the balance in your checkbook.

Going Over Your Overdraft Reserve Limit

Should you write checks that put you over your Overdraft Reserve limit, the Bank may, at our discretion, return the check or checks to the payee(s). In addition, whether we pay or return a Non-Sufficient Funds item, a flat-per item handling fee of $25.00 will be charged to your account as a Non-Sufficient Funds or Overdraft (NSF/OD) Charge. Also, a $5 per day fee will be charged beginning the 4th consecutive business day your account is overdrawn. The maximum daily per item handling fee for items paid using the Overdraft Privilege Program is $100.00 per day. No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $10 or less. An insufficient funds notice will be mailed to you.

If Your Checks Are Returned:

  • The merchant may charge you a fee when your check is returned unpaid and may be unwilling to accept checks from you in the future.
  • The person or vendor who accepted your check as payment may be charged a fee by his/her bank where he/she deposited your check.
  • Your credit rating may be adversely affected.

Transactions Covered By Overdraft Reserve

Transactions which may, at our discretion, be honored under the Overdraft Reserve privilege include:

  • Checks and other debits cashed at teller windows
  • ACH debit transactions (automatic payments)
  • Automatic loan payments
  • Checks issued to a third party

Overdraft Reserve May Cover ATM and Debit Card Transactions

If you sign the Opt-in authorization, your Overdraft Reserve privilege may extend to transactions made at an ATM or with your Debit Card. In the case of an ATM, the balance shown on your receipt will reflect your actual balance, not including your Overdraft Reserve limit.

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NEW OVERDRAFT RULES FOR DEBIT AND ATM CARDS

New regulations now give debit card and ATM card users' options regarding overdraft procedures.

The following are some situations to consider when making your decision whether you do or do not want to authorize the Bank to pay overdrafts created by ATM and debit card transactions.

Situation One - The customer goes to the grocery store two or three days prior to their pay day. The current balance in their checking account is $50. They have $200 in groceries in their cart. They do not have their checkbook. They want to be able to use their debit card and take the groceries home instead of putting most of the groceries back on the shelves.

Situation Two - The customer goes to the gas station and needs to purchase $40 of gas, but is currently $80 overdrawn. They need gas to go to work the next day. They do not have their checkbook. They want to be able to use their debit card to purchase the gas and be able to go to work.

Situation Three – The customer goes to the restaurant for dinner. The bill is $30. The current balance in the customer's checking account is $25. The restaurant will not accept checks. They want to be able to pay for dinner.

If you do not want to have your transactions declined, you may want to choose the option that you do want to authorize the Bank to pay overdrafts created by ATM and debit card transactions.

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Overdraft Reserve Covers All Existing Eligible Accounts

Overdraft Reserve privileges may be granted on all checking accounts after they have been open for 30 days and are in good standing.

Repaying Overdrafts And Fees

You will be required to bring your checking account into a positive balance within 15 calendar days of your overdraft. If, after 15 days your account remains in a negative position, we may close your account and take appropriate steps to recover funds advanced to cover your overdrafts, as well as the Bank's fees.

Overdraft Reserve Effective Date

Overdraft Reserve privileges may start 30 days after you open your personal checking account, if it is in good standing.

Overdraft Reserve Limits

To determine your Overdraft Reserve limit, refer to the chart below:

Personal Regular Checking $300
Personal Interest Checking $500
Business Checking $1,500

Call TeleBanker -- Your Account Information By Phone Anytime -- (815) 937-9800

You may call anytime day or night, 365 days a year.

The balance reflected through our free telephone information service will not include your Overdraft Reserve limit.

If you have questions regarding your newly created Overdraft Reserve privilege, or if you do not wish to have this new service available, don't hesitate to see a Customer Service Representative at the location most convenient to you; call a Customer Service Representative at (815) 936-7600; write to us at 333 E. Court Street, Kankakee, IL 60901 or 315 Main N.W., Bourbonnais, IL 60914; or press contact us.

Overdraft Checking Customer Overdraft Policy

An insufficient balance could result in several ways, such as: a) the payment of checks, electronic funds transfers, or other withdrawal requests; b) payments authorized by you; c) the return of unpaid items deposited by you; d) the assessment of bank service charges; or e) the deposit of items which, according to the bank's Funds Availability Policy, are treated as not yet available or finally paid. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds. Rather than automatically returning, unpaid, any non-sufficient funds items that you have, if your eligible account is in good standing, which includes at least: a) you are not in default on any loan obligation to Peoples Bank of Kankakee County, b) you bring your account to a positive balance (not overdrawn) at least once every fifteen (15) calendar days, and c) your account is not the subject of any legal or administrative order or levy, we will consider – as a discretionary courtesy or service and not a right of yours nor an obligation on our part – approving your reasonable overdrafts. As an alternative, you may initiate an automatic overdraft protection transfer authorization to have funds transferred from another account at the Bank to cover an overdraft. Normally, we will not approve an overdraft for you in excess of your limit including any overdraft handling charge(s). We may refuse to pay an overdraft for you at any time, even though we may have previously paid overdrafts for you. You will be notified by mail of any non-sufficient funds items paid or returned that you have; however, we have no obligation to notify you before we pay or return any item.

Whether we pay or return a Non-Sufficient Funds item, a flat-per item handling fee of $25.00 will be charged to your account as a Non-Sufficient Funds or Overdraft (NSF/OD) Charge. The maximum daily per item handling fee for items paid using the Overdraft Privilege Program is $100.00 per day. No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $10 or less.

The amount of any overdraft plus our overdraft or non-sufficient funds charge(s) of $25.00 per item that you owe us shall be due and payable upon demand. Also, a $5 per day fee will be charged beginning the 4th consecutive business day your account is overdrawn. If there is an overdraft paid by us on an account with more than (1) owner on the signature card, each owner, and agent if applicable, drawing/creating the item creating the overdraft, shall be jointly and severally liable for such overdraft, plus our overdraft or non-sufficient funds handling charge(s) of $25.00 per item. Also, a $5 per day fee will be charged beginning the 4th consecutive business day your account is overdrawn. You may be able to access your overdraft checking limit through a teller, ACH, check or automatic payment. In addition, if you sign the Opt-in authorization, you may be able to access your overdraft checking limit through an ATM or debit card purchase.

LIMITATIONS: Available to accounts after 30 days of opening, if in good standing. If the overdraft checking service is suspended on three occasions in a 12-month period, the overdraft checking service will be revoked for a period of at least six months. The fees charged for the items paid into overdraft or returned, as well as the amount of the overdraft item(s), will be subtracted from the disclosed overdraft protection dollar limit. The order in which transactions are received and processed can affect the total amount of overdraft fees incurred by a customer.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is Important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional cost to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

Peoples Bank of Kankakee County reserves the right to limit participation to one account per customer and to discontinue this product at any time with prior notice. Please advise a Customer Service Representative if you do not wish to have this service available on your account.