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Overdraft Information

Personal Banking

How We Handle Overdrafts

It is the policy of The Bank of Salem (hereafter known as "the Bank") to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Bank is not obligated to pay any item presented for payment if your account does not contain sufficient collected (available) funds. Any payment by the Bank of a non-sufficient fund check or checks (or other item) does not obligate the bank to pay an additional or subsequent non-sufficient fund check or item. Additionally, we are not obligated to provide prior written notice of a decision to refuse to pay any additional non-sufficient check or item.

Pursuant to the Bank’s commitment to always provide excellent customer service, if a consumer account (primarily used for personal or household expenses) has been open for at least 30 days and your account is in good standing, the Bank may consider approving overdrafts up to a reasonable amount. Any and all bank fees and charges, including without limitation, the non-sufficient fund/overdraft fees (as set forth in our fee schedule and our Deposit Account Agreement) will be included in this reasonable amount.


The fee for overdrafts is $29.00 per item. The fee for insufficient (returned) items is $29.00 per item. This fee applies even if the same item is presented and returned multiple times. In addition, in an effort to deter subsequent and long-term overdrafts, a $6.00 per business day fee will be added for a continuous overdraft beginning on the fourth business day of an overdraft.

The total of the overdraft (negative) balance, including any and all bank fees and charges, including all non-sufficient fund/overdraft fees, is due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable for such amounts, as described in the Deposit Account Agreement.

How to Avoid Overdrafts

Options to avoid overdrafts include:

  1. Automated Balance Protection Transfers. You may arrange for automatic transfers from another checking account or a savings account (assuming sufficient funds are available) to avoid an overdraft. There is a fee of $5.00 per automated transfer.
  2. You may “Opt Out” of ATM and one-time debit card transactions that may cause an overdraft. In this case, we will not consider payment of these types of transactions if there are not sufficient funds in your account.
  3. Keep up to date on your account balances by utilizing Online Banking, Telephone Banking and/or Mobile Banking. You are able to transfer funds from other accounts to keep sufficient funds available to avoid potential overdrafts.
  4. You may sign up for Checking Account Balance Alerts in Online Banking or Mobile Banking. Sign up to receive an online message or an email to alert you when your account balance falls below a level set by you.

Again, approval of reasonable overdrafts by the Bank on consumer accounts in good standing as described above is only a courtesy and not a right or obligation and is within the Bank’s sole discretion and can cease at any time without prior written notice or reason or cause. Credit agencies may be notified if overdrafts are not paid.

We encourage you to keep careful records and practice good account management. This will help you to avoid creating items without sufficient funds and potentially incurring fees.

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