Ethan Riley
Union Bank offers an Overdraft Privilege service, which is automatically available to customers with a checking account in good standing. This service allows the bank to authorize and pay overdrafts up to your assigned overdraft limit for certain transactions. However, this is done at the bank's discretion, and they do not guarantee that they will always authorize and pay any type of transaction. Overdraft fees can be incurred for various transactions, including checks, debit card transactions, ATM withdrawals, and online banking transfers. The fee structure varies, with NSF Paid Item fees, NSF Returned Item fees, and Continuous Overdraft Fees, which can accumulate quickly if not managed responsibly. It is important to note that overdrafts should not be relied upon to cover routine expenses, and customers should be mindful of their account standing to avoid excessive fees.
| Characteristics | Values |
|---|---|
| Overdraft fees | Yes, for each item paid into overdraft |
| Overdraft fee amount | $34 NSF Paid or Returned Item Fee (maximum of 5 per day) |
| Continuous Overdraft Fee | $25 charged on every fifth consecutive business day the account remains in overdraft status |
| Overdraft limit | Dynamic, between $0 and $1,500 for personal accounts and $0 and $2,500 for business accounts |
| Overdraft protection | Linking a savings account or overdraft line of credit |
| Overdraft opt-out | Possible at any time by visiting a branch or calling |
| Overdraft opt-in | Possible by calling or completing an online form |
| Overdraft eligibility | Account in "good standing" (positive end-of-day balance at least once every 30 calendar days, no excessive overdrafts, and no legal orders, levies, or liens against the account) |
| Overdraft authorization | At the bank's discretion |
| Overdraft notification | Overdraft notice sent each time items are paid or returned |
| Overdraft fee waiver | No fee charged for items overdrawing the account balance by $10 or less |
| Maximum daily overdraft fees | $245 |
| Inactivity fee | $10 per month for no external activity for more than 365 days with a balance of less than $50 |
| Dormant fee | $25 per month for no external activity for more than 731 days with a balance of less than $50 |
| Early withdrawal penalty | 4% of the amount withdrawn prior to maturity |
| ATM withdrawal fee | Fee for withdrawal at non-bank-owned ATMs |
| Illegal overdraft practices | Fined by the Consumer Financial Protection Bureau (CFPB) for illegal enrollment and misleading information |
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What You'll Learn
Union Bank Overdraft Fees
Union Bank does charge overdraft fees, but the specifics vary depending on the type of Union Bank account and the transaction in question.
Union Bank & Trust offers an Overdraft Privilege service, which is automatically available to customers with eligible accounts in good standing. This means that the bank may, at its discretion, choose to pay overdrafts up to a certain limit. An account is considered in good standing if it deposits sufficient funds to bring the account to a positive end-of-day balance at least once every 30 calendar days, avoids excessive overdrafts, and has no legal orders, levies, or liens against it. The overdraft limit for personal accounts is between $0 and $1,500, while for business accounts, it is between $0 and $2,500. For each item paid into overdraft, there is a $34 NSF Paid Item fee, and for each nonsufficient fund item returned unpaid, there is a $34 NSF Returned Item fee, with a maximum of five NSF fees per day. Additionally, a $25 Continuous Overdraft Fee is charged every fifth consecutive business day that the account remains in overdraft status.
Union Bank also offers the option to link your checking account to another Union Bank account, such as a savings account, to cover overdrafts. In this case, funds are automatically transferred to your checking account from the designated account, with no negative balance to repay. There are no overdraft fees as long as there are sufficient funds in the designated account.
For customers who do not want to participate in the Overdraft Privilege service, there is an option to opt out. This can be done by visiting any Union Bank & Trust location, contacting them via phone, or using the online opt-out form.
It is important to note that overdrafts should not be used to finance routine expenses, and extensive use of Overdraft Privilege can lead to substantial fees.
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Overdraft Privilege
Union Bank offers an Overdraft Privilege service to its customers. This service is automatically available to customers who maintain their checking accounts in good standing. An account is considered in "good standing" if you deposit sufficient funds to bring your account to a positive end-of-day balance at least once every 30 calendar days, avoid excessive overdrafts, and have no legal orders, levies, or liens against your accounts.
With Overdraft Privilege, Union Bank may authorize and pay overdrafts up to your assigned overdraft limit for certain types of transactions, including checks and other transactions made using your checking account number. However, it is important to note that Overdraft Privilege is a discretionary service, and the bank does not guarantee that it will authorize and pay every overdraft.
The overdraft limit is dynamic and may change based on daily account activity. For personal accounts, the overdraft limit is between $0 and $1,500, while for business accounts, it is between $0 and $2,500.
Union Bank charges various fees associated with overdrafts, including a $34 NSF Paid or Returned Item Fee, a $25 Continuous Overdraft Fee, and a Returned Transaction Fee of $32. These fees can add up, and customers are encouraged to manage their accounts responsibly and not rely on Overdraft Privilege to cover ordinary expenses.
It is worth noting that Union Bank provides resources to help customers keep track of their accounts and avoid overdraft fees, such as online banking, mobile banking, and alerts. Additionally, customers can opt out of the Overdraft Privilege service at any time by visiting a branch or contacting the bank.
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Overdraft Protection
Union Bank & Trust offers a service called Overdraft Privilege, which is automatically available to customers who maintain their checking accounts in good standing. Overdraft Privilege is not a line of credit, but rather a discretionary service, meaning the bank does not guarantee that it will authorise and pay a transaction if there are insufficient funds in the account. The bank will consider paying overdrafts up to the customer's daily overdraft limit, which can vary depending on daily account activity.
There are fees associated with Overdraft Privilege. A $34 NSF Paid Item fee is charged for each item paid into overdraft, while a $34 NSF Returned Item fee is charged for each item returned unpaid. A maximum of five NSF fees can be charged per day. Additionally, a $25 Continuous Overdraft Fee is applied every fifth consecutive business day that the account remains in overdraft status.
Union Bank & Trust also offers the option to link a checking account to another account, such as a savings account, to cover overdrafts. Funds are automatically transferred in $100 increments to cover the overdraft amount, and no negative balance needs to be repaid. This service is subject to credit approval and offers a minimum credit line of $1,000.
Customers can choose to opt out of Overdraft Privilege at any time by visiting a branch location or contacting the bank.
It is important to note that overdrafts should not be used to finance routine expenses, and extensive use of Overdraft Privilege can lead to substantial fees.
In addition to Union Bank & Trust, there are other banks with similar names, such as United Bank of Union and Atlantic Union Bank, which offer their own overdraft protection services and may have different fee structures. It is always important to review the terms and conditions of any overdraft service before opting in.
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Overdraft Limit
Union Bank offers an Overdraft Privilege service to its customers. This service is automatically available to customers who maintain their checking account in good standing and in a responsible manner. Overdraft Privilege is not a line of credit.
With Overdraft Privilege, Union Bank will consider paying overdraft items up to your daily overdraft limit. Your overdraft limit may change based on your daily account activity. For personal accounts, the overdraft limit is between $0 and $1,500, and for business accounts, the limit is between $0 and $2,500.
Union Bank pays overdrafts at its discretion, which means it does not guarantee that it will always authorize and pay any type of transaction. If the bank does not authorize and pay an overdraft, the transaction will be declined.
It is important to note that overdrafts should not be used to finance ordinary or routine expenses, and customers should not rely on overdrafts to cover these types of expenses. Extensive use of Overdraft Privilege may result in substantial fees.
In addition to Overdraft Privilege, Union Bank offers other overdraft protection options, such as linking your checking account to another Union Bank account, such as a savings account, to help pay for items that would otherwise overdraw your account.
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Overdraft Fees Charged by Atlantic Union Bank
Atlantic Union Bank offers four options for Overdraft Services to help customers cover unexpected overdrafts. The bank will consider paying items, at their discretion and for a fee, when a customer's account balance at the time of settlement is not enough to cover them. If the bank does not pay the item, it is returned unpaid and no fee is charged, although the merchant may charge a returned fee.
The bank does not charge an Overdraft Fee when an item is $5 or less, or when an item overdraws an account by $5 or less. No Overdraft Fees are charged as long as there are sufficient funds in a customer's designated line of credit to cover an overdraft. The Annual Percentage Rate (APR) is 18.00% in Virginia and Maryland, and 16.00% in North Carolina.
In 2023, the Consumer Financial Protection Bureau (CFPB) ordered Atlantic Union Bank to pay $6.2 million for illegal overdraft fee harvesting. The bank was found to have enrolled thousands of customers in checking account overdraft programs without proper consent.
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Frequently asked questions
Yes, Union Bank charges overdraft fees. There is a $34 NSF Paid or Returned Item Fee for each item paid into overdraft, with a maximum of 5 fees per day. There is also a $25 Continuous Overdraft Fee charged every fifth consecutive business day an account remains in overdraft status.
Overdraft Privilege is a discretionary service that is automatically available to customers who maintain their checking account in good standing. Union Bank will consider paying overdraft items up to your daily overdraft limit, which may change based on your daily account activity.
Union Bank has designed online banking, mobile banking, and alerts to help you keep an eye on your accounts and avoid overdraft fees. You can also opt out of authorizing overdrafts on your ATM and everyday debit card transactions by contacting Union Bank or using the online opt-out form.
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