Personal Overdraft Protection


Personal Overdraft Coverage Options

What is an overdraft?

An overdraft happens when there is not enough money in your account for a transaction. The Bank's standard overdraft practices may pay, for a fee, overdraft transactions at the Bank's discretion based on your account history, the deposits you make, and the transaction account. We do not guarantee we will always pay your overdraft transaction. If we do not pay your transactions, the transaction will be declined or returned unpaid.

Overdraft Options
There are four coverage options from which to choose, each with its own details. Review each option to see which is best for you.

Privilege Plus**►
Happy Access
Line of Credit***

Uses your Overdraft Limit to pay insufficient fund items 

Uses your Overdraft Limit to pay insufficient fund items

Uses the available balance in one of your other accounts to transfer funds and pay items  Uses the available balance of your Happy Access Line of Credit to transfer funds and pay items 
How to Add Service  Comes with your account You can authorize  Request this  Apply for this 
Checks  √  √  √  √ 
ACH & Other Transactions    √  √  √  √ 
ATM Withdrawals    √  √  √ 
Daily Debit Card Transactions    √  √  √ 
Cost  An overdraft fee of $27 (per item) is assessed when an item is paid or returned by the bank in the event of an overdraft.   An overdraft fee of $27 (per item) is assessed when an item is paid or returned by the bank in the event of an overdraft.  $0 transfer fee. $0 transfer fee. Outstanding balances are assessed the annual percentage rate.  

* By selecting this option, you are accepting Overdraft Privilege Services; ATM withdrawals and Daily Debit Card Transactions will not be covered.

** By selecting this option, you are accepting Overdraft Privilege Services; ATM withdrawals and Daily Debit Card Transactions will be covered.

*** Subject to credit approval.

► Transactions covered by this policy are subject to the approval of HAPPY STATE BANK.    

How do I know which option is best for me?

Option 1
By opening an eligible HAPPY STATE BANK checking account, you are automatically enrolled in the Overdraft Privilege option, which only covers transactions made with checks and Automated Clearing House (ACH) charges (direct deposit, payroll and vendor payments, etc.), and comes with a $27 overdraft fee per overdraft transaction.  

Option 2
If you want coverage on all types of transactions, the Overdraft Privilege Plus is the option for you. The Overdraft Privilege Plus will cover charges made with checks, ACH, ATM withdrawals, and your debit card transactions. Since this plan includes coverage on ATM withdrawals and daily debit card purchases, you must opt-in for the Overdraft Privilege Plus. You will be charged a $27 fee per overdraft transaction.

Option 3
Manage your overdraft transactions using another personal account with the Overdraft Protection Account Transfer option. HAPPY STATE BANK will connect another one of your deposit accounts (like a savings account) as the safety net from which to transfer funds. All transaction types (checks, ACH, ATM withdrawals, and your debit card transactions) are covered. The Overdraft Protection Account Transfer option may be less expensive than the Overdraft Privilege or the Overdraft Privilege Plus, and you must request it.

Option 4

No one knows your finances better than you, so maybe it’s better for you to tie a line of credit account to your bank account, instead of a savings account. There are benefits to pulling from a line of credit rather than savings, mainly ensuring your savings account maintains a certain balance in case an emergency arises. The HAPPY Access Line of Credit was made to pull from when an overdraft occurs, and is automatically transferred with no interruption to the transaction. Interest will be charged based on the amount transferred from the HAPPY Access Line of Credit, but this may be a less expensive option than the Overdraft Privilege option. You will need to submit an application for credit approval, found here.

If you have any questions on how the Happy State Bank Overdraft Coverage Options work or would like to opt out, please call your local branch. 

We’re always happy to hear from you! 

HAPPY tips to avoid a negative balance.

If you find that you have more overdraft fees than you can afford (which is spending more than you have), perhaps opting out of the Overdraft Privilege at HAPPY is the right move for your finances. 

Sometimes having that safety net actually causes the consumer to impulse buy rather than play it safe and save that money.

If you like the option of having that overdraft protection if necessary but still need to remain accountable, perhaps not opting into the Overdraft Privilege Plus is the safest route.

Here are six steps from the Consumer Financial Protection Bureau (CFPB) you can take to reduce or eliminate overdraft fees:

► Track your balance as carefully as you can to reduce the chance you’ll overdraft. Also, sign up for low balance alerts to let you know when you’re at risk of overdrawing your account. If you have regular electronic transfers, such as rent, mortgage payments or utility bills, make sure you know how much they will be and on what day they occur. Track the checks that you write and note when the funds are deducted from your account, so that you do not accidentally spend money you have already paid from your account. You also need to know when the funds you have deposited will become available for your use.

Check your account balance before making a debit card purchase (or ATM withdrawal), and then pause to ask yourself if you have any other payments coming up. Just because your account has enough funds when you’re at the checkout counter doesn’t mean you’ll have the funds later when the transaction finally settles. If you’ve recently written checks or made online bill payments that have yet to be deducted from your account, these could draw down your funds in the meantime, leaving you without enough funds to cover your purchase. Debit card overdraft fees can occur on transactions that were first authorized when there were sufficient funds to cover them, but took the account negative when the transaction settled.

► Don’t opt-in. You can avoid paying overdraft fees when using your debit card for purchases and at ATMs by not opting-in, or by opting-out if you are currently opted in. This means that your debit or ATM card may be declined if you don’t have enough money in your account to cover a purchase or ATM withdrawal at the time you attempt a transaction. However, it also means you won’t be charged an overdraft fee for these transactions.

► Link your checking account to a savings account. If you overdraw your checking account, your institution will take money from your linked savings account to cover the difference. You may be charged a transfer fee when this happens, but it’s usually much lower than the fee for an overdraft.

► Ask your financial institution if you are eligible for a line of credit or linked credit card to cover overdrafts. You may have to pay a fee when the credit line is tapped, and you will owe interest on the amount you borrowed, but this is usually a much cheaper way to cover a brief cash shortfall.

► Shop around for a different account. Find out about your bank or credit union’s list of account fees, or ask about them, then compare them with account fees at other banks or credit unions. Assess your own habits and what fees you may face. Consider penalty fees, such as overdraft and non-sufficient funds charges, as well as monthly maintenance, ATM surcharge, and other service fees. When comparing banks or credit unions, you might also want to consider factors such as the hours of operation, locations, access to public transportation, available products and services, and reputation for customer service.

The Federal Deposit Insurance Corporation (FDIC) has some great advice on avoiding unnecessary fees and how the laws are protecting you as the customer. We highly recommend you read their tips and are aware of your options. “Your Guide to Preventing and Managing Overdraft Fees” can be found here:

Our Overdraft Coverage Options are ultimately here to serve you as our customer, even if that means no coverage at all. Feel free to contact us if you have any questions!