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Overdraft Services

Overdraft Defender

You never know when an unanticipated expense or mathematical error will leave your checking account short of cash. With Overdraft Defender, we will honor your overdrafts, at our discretion, up to an assigned limit. This means you can enjoy peace of mind, knowing you won’t have the embarrassment of having a check returned due to insufficient funds. Overdraft Defender is a special privilege for customers who have maintained their checking account in good standing.


There is no charge for Overdraft Defender unless you use it. If an overdraft occurs, the normal overdraft fee of $30 per item will apply. You will receive a notice that reflects the item(s) paid and the bank’s overdraft fee.


Limits and Covered Transactions 

Type of Account* Limit
Non-interest bearing Personal Checking $300
Interest bearing Personal Checking $500
Business Checking $1,500

    Transactions which may, at our discretion, be honored include:

    • Checks and other debits cashed at teller windows
    • ACH transactions (automatic payments)
    • Automatic loan payments
    • Checks issued to a third party
    • ATM/Debit card transactions

    If you choose the OD option when signing the Overdraft Authorization Form, your Overdraft Defender privilege may cover ATM and debit card transactions. At an ATM, the balance on your receipt will reflect your actual balance, not including your Overdraft Defender limit.


    Going Over Your Limit

    Should you have a transaction that puts you over your limit, we may, at our discretion, return the item(s) to the payee(s). In addition, the $30 per-item return fee will be charged to your account and an insufficient funds notice will be sent to you.


    If your checks are returned:

    • The merchant may charge you a fee and be unwilling to accept your checks in the future
    • The merchant who accepted your check may be charged a fee by the bank where your check was deposited
    • Your credit rating may be adversely affected


    Repaying Overdrafts and Fees

    You will be required to bring your checking account to a positive balance within 15 calendar days of your overdraft. If, after 15 days your account remains in a negative position, we may close your account and take appropriate steps to recover funds advanced to cover your overdrafts, as well as the bank’s fees.

    *Some restrictions apply.


    Overdraft Protection


    What is Overdraft Protection

    Overdraft Protection is an account feature that allows you to manage your accounts by using the money in your savings or other UBI checking account to protect your checking account from overdrafts.


    How does Overdraft Protection work?

    When your checking account becomes overdrawn, United Bank of Iowa will automatically transfer your available deposit funds in increments of $250 to your checking account. If your account has less than a $250 balance, the transfer will not take place. 


    Does it cost anything?

    Each time an auto transfer is needed, an automatic transfer fee of $5 per daily transfer will be charged. You will not be charged the $30 overdraft charge. 


    To add overdraft services to any of your accounts, contact any United Bank of Iowa location.