Overdraft Services

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.

Peoples Bank of Alabama encourages its customers to handle their deposit accounts and financial matters in a responsible manner. From time to time the Bank will make its customers aware of financial education resources provided by the Bank or other outside sources that may be beneficial. For more information on financial education resources visit Advice. To learn more about smart ways to manage your money, complete the FDIC Money Smart financial education program online through www.fdic.gov/moneysmart.

The best way to avoid overdrafts and insufficient funds fees are to:

  • Monitor your account balance regularly via on-line/mobile banking, telephone banking by calling 888-537-8772 or viewing your monthly statements. Remember that some checks and automatic payments may not have cleared when viewing your available balance.

  • Keep track of how much money you have in your checking account by keeping your account register up-to-date. Record all checks when you write them and other transactions when you make them. And don’t forget to subtract any charges.
  • Pay special attention to your electronic transactions, record your ATM withdrawals and charges, debit card purchases, and online payments.
  • Don’t forget about automatic bill payments you may have set up for utilities, insurance or loan payments.

Peoples Bank of Alabama Online and Mobile Banking allow you to access your account information 24 hours a day, seven days a week and help you keep track of your account balance. You must first enroll in Online Banking, and set up Transfers and Bill Pay. Wireless carrier fees may apply.

Online or Mobile Alerts let you know when there's important activity on your account, such as a low balance. Alerts received as text messages on your mobile access device may incur a charge from your mobile access service provider.

Overdraft Protection Options

Peoples Bank of Alabama understands it is not uncommon to occasionally get caught short of money in your checking account. When that happens, it’s helpful to have a backup plan.

Peoples Bank of Alabama (“the Bank”) provides its customers with various options when transactions are presented and the account has insufficient funds. These optional services include: overdraft protection via a Line of Credit, overdraft protection via an Overdraft Sweep from a designated account or the bank’s Courtesy Overdraft Privilege.

Overdraft Line Of Credit

An Overdraft Line of Credit ("OD Line") is credit line designed specifically for Overdraft Protection. This optional service is subject to credit approval with a minimum line amount of $500.

An OD Line will transfer available funds to the designated checking account ("Linked Account") when an insufficient balance occurs in the Linked Account (checking account). Transfers will be made in increments of $50 to cover an overdraft in a Linked Account. The fixed Annual Percentage Rate on the OD Line is 18.00% and an annual fee of $50 will be charged beginning in the first billing cycle after the OD Line is opened and each year thereafter. A payment equal to 10% of the outstanding balance on the OD Line but not less than $10.00 will be deducted each month from the Linked Account. The OD Line agreement may be canceled upon written request or in the Bank’s discretion. Any balance, including accrued interest, is the legal responsibility of the borrower as outlined in the agreement.

Overdraft Sweep

An Overdraft Sweep allows available funds from another Peoples of Alabama designated deposit account to be transferred when an insufficient balance exists. The Bank will only set up an Overdraft Sweep between two accounts on which your name appears as an owner or obligor and where the ownership on both accounts is the same. It is the duty of the customer and not the Bank to designate accounts to establish the Overdraft Sweep.

In the Bank's sole discretion, it may limit the types and number of accounts that may be designated and impose restrictions on designating specific accounts the customer may have. Excess debit fees may apply. The Overdraft Sweep agreement may be cancelled upon written request or in our discretion.

Courtesy Overdraft Privilege

The Bank’s Courtesy Overdraft Privilege is a non-contractual discretionary service that is available to individually/jointly owned accounts in good standing for personal or household use for the purpose of paying overdrafts when an insufficient balance exists in the checking account. There is no annual fee for this privilege nor will interest be charged for any overdraft balance created by the Courtesy Overdraft Privilege service. The amount of any overdraft including a per item fee of $22.00 and/or a returned per item fee of $22.00 shall be due and payable upon demand, but if no demand is made, no later than 45 calendar days after the creation of the overdraft. If an account remains overdrawn five (5) consecutive days, the Bank will charge an additional continuation overdraft fee of $5.00 every 5th day of consecutive overdraft up to $30.00 during each consecutive overdrawn period.

We will not pay and charge a fee for ATM or onetime debit card transactions that cause an overdraft on your account unless we have obtained your affirmative consent to pay these items and provided you with a written confirmation of your consent.

Our bank places a $176.00 limit on the total overdraft (paid Item) fees that will be imposed per day on consumer accounts. Overdraft (paid item) fees are not assessed on transactions $1.00 or less or when the end of day balance is overdrawn $10.00 or less.

Your account is considered to be in "good standing" when the following criteria are met:

  • You bring your account to a positive end-of-day balance for at least one business day every 45 calendar days (including the payment of all bank fees and charges).
  • You are not 60 days or more past due on any loan or other obligations to us.
  • You have no legal orders, levies or liens against your accounts with us.
  • You have no evidence or appearance of fraudulent activity on your account(s).

The Overdraft Privilege is not a line of credit and the customer may opt out of the privilege at any time, but he/she is responsible for any overdrawn balances at the time of opting out. The Bank will promptly notify the customer of any non-sufficient funds items paid or returned that occurs; however, the Bank has no obligation to notify the customer before paying or returning any item. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts inclusive of fees.

The Bank may refuse to pay an overdraft item at any time even though overdrafts may have been paid on an account in the past which may occur if during a periodic review the Bank determines that the account is not in good standing as defined above, or, if it appears the Courtesy Overdraft Privilege service is being used irresponsibly. Courtesy Overdraft Privilege should not be viewed as an encouragement to overdraw your account. The best defense against overdraft fees is to monitor your account activity on a regular basis. Any customer, who would like to have this service removed from an account, may call (256) 737-7000 or toll free at (877) 788-0288.

The Order of Paying Items

In the normal course of business, the Bank pays electronic transactions first in the order they are presented for payment, then checks cashed or checks issued for loan payments or bank products then all other checks by serial number on paying day.

The Bank reserves the right to change the order of payment without notice if fraud or possible illegal activity affecting the account is suspected.

Also, the order of item payment may create multiple overdraft items during a single banking day for which the customer will be charged a paid item fee and/or a return item fee for each overdraft item.

The maximum number of multiple overdraft items in a single banking day that the Bank will assess an overdraft fee is eight (8) per individual account.