Overdraft Coverage Options: Overdraft Privilege and Overdraft Protection

Life happens! National Bank of Delaware County understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help. To sign up for coverage, simply download the form and return to the nearest branch.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

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1. Contact us at (607) 865‐4126 or customerservice@nbdcbank.com, or come by a branch to sign up or apply for these services; 2. Subject to credit approval; 3. Annual Percentage Rate (subject to 12 C.F.R. § 1026.16(b)).

Overdraft Protection services apply to all types of transactions and allow you to link other sources, such as a line of credit, at NBDC Bank to your checking account to pay an overdraft transaction for a fee or finance charge. Please note overdraft lines of credit are subject to credit approval.

Overdraft Privilege allows you to overdraw your account for a fee in order to pay a transaction.

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If You Would Like to Select Extended Coverage for Future Transactions

  • call us at (607) 865-4126,
  • complete the online consent form found at www.nbdcbank.com,
  • visit any branch, or
  • complete the enclosed form and mail it to us at 131-133 Delaware Street, Walton, NY 13856
  • send us an e-mail at customerservice@nbdcbank

*If you choose Extended Coverage, all the transaction types listed in Standard Coverage are included, along with ATM withdrawals and everyday debit card transactions. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Privilege in its entirety by contacting us at (607) 865‐4126 or sending us an e‐mail at customerservice@nbdcbank.com. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again.

What Else You Should Know

  • We generally post items in the following order: 1) Electronic transactions and 2) checks from the lowest dollar amount to the highest; however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of overdraft or return fees assessed.
  • A link to a line of credit is a less expensive option than an overdraft. The NBDC Bank offers the CHECK‐LOAN line of credit which provides coverage with fees of $4.00 per advance or a $5.00 annual fee if no advances are made in a 12 month period. This product charges interest at an annual percentage rate of 16.00%.
  • Overdraft Protection Link to another deposit account you have at NBDC Bank ($5.00 transfer fee per transfer)
  • A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.
  • We will not charge an overdraft fee if an account is overdrawn by $10.00 or less. For consumer accounts, there is a limit of $210.00 per day we will charge. This exception does not apply to business accounts.
  • Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to keep track of your balance.
  • If your account balance remains overdrawn for longer than ten business days, we will charge your account a daily overdraft fee of $4.00 for each of the consecutive business days the account remains overdrawn, beginning with day eleven.
  • The $35.00 fee is the same fee as the fee that would be charged if a check was returned as unpaid. If multiple items would overdraw your account on the same day, each item would be assessed an Overdraft fee or a Return fee of $35.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
  • Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
  • Although under payment system rules, NBDC Bank may be obligated to pay some unauthorized debit card transactions, NBDC Bank will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  • Giving us your consent to pay every day debit card and ATM overdrafts may result in you incurring overdraft fees for transactions that we would otherwise be required to pay without assessing an overdraft fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • NBDC Bank authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. We may place a hold on deposited funds in accordance with our Deposit Account and Disclosure Agreement. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.
  • NBDC Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described in this letter, NBDC Bank will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
  • We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit.
  • NBDC Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction.
  • Overdraft Privilege limits of up to $500.00 are available for eligible Personal Checking accounts opened at least sixty (60) days in good standing.
  • Overdraft Privilege limits of up to $1,000.00 are available for eligible Business Checking accounts opened at least sixty (60) days in good standing.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty‐five (35) days for a minimum of one business day.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.

It's simple to sign up. Simply click here to download the form and return it to the branch closest to you!

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (607) 865-4126 or visit a branch.

Overdraft line of credit1, 2$4 per advance + 16.00 % APR3
Overdraft Privilege$35.00 overdraft fee per item. Daily fees may apply.
Overdraft Protection Link$5.00 transfer fee per transfer.
Transactions Covered with Overdraft PrivilegeStandard Coverage
(No action required)
Extended Coverage
(Your consent required)*
ACH - Auto Debitsxx
Recurring Debit Card Paymentsxx
Online Bill Pay Itemsxx
Internet Banking Transfersxx
Telephone Bankingxx
Teller Window Transactionsxx
ATM Withdrawals x*
Everyday Debit Card Purchases  x*