Overdraft Services

Linked Accounts

• Link any eligible Mechanics Bank checking, savings and/or money market accounts to your primary checking account.
  In the event of an overdraft, funds will be automatically transferred providing there are available funds in the funding
  account to cover the entire overdraft balance after posting all transactions at the end of the business day.
• Certain account types are subject to a limited number of transfers per month or statement cycle.¹

Is linking your accounts the best overdraft solution for you?

Pros

• Avoid overdraft related fees when funds are transferred
• Balances are FDIC insured to the maximum allowed by law
• No credit approval required
• No interest charged on overdraft advances
• For certain linked accounts, interest is earned
• Transfer fee is lower cost than overdraft related fees

Cons

• Need to have and maintain sufficient balances to cover potential overdrafts
• Transfer fee for each overdraft advance
• For savings and money market accounts, an excessive transaction fee may be charged if certain transactions exceed six (6) during any calendar month¹
• Account may be converted to a non-interest bearing account if transaction limits are frequently exceeded

Linked Account Details

Eligible account types	Checking, Savings, Money Market
Minimum opening deposit	Varies by product
Approval/Eligibility	ChexSystems
Limit	Balance of the linked account
Monthly service charge	Varies by product
Ways to waive service charge	Varies by product
Interest rate/finance charge	For current interest rates, call 800.797.6324
Other fees	Overdraft Transfer Fee: $10.00 per transaction
Requirements/ Restrictions	A personal checking account Limited to six (6) withdrawals and/or transfers per month1 (savings and money market accounts only) Account ownership must be the same as the primary account Balance in linked account must be sufficient to cover the entire overdraft balance after posting all transactions at the end of the business day in order for fund transfer to occur.

Line of Credit

• A line of credit linked to your primary checking account
• You must apply for a line of credit and are subject to credit approval 

Is an overdraft line of credit the best solution for you?
 

Pros

• Avoid overdraft related fees when funds are transferred
• Doesn't require additional deposit balances or reserve to cover potential overdrafts
• Maximum credit limit of up to $5,000
• Outstanding balance can be paid back over time
• No limit on the number of transactions per month
• Transfer fee + interest may be lower cost than overdraft related fees

Cons

• Credit approval required so it is only available to credit worthy individuals
• Interest charged on outgoing balance
• Overdraft transfers must be in increments of $100.00
• Transfer fee for each advance

Line of Credit Details

Monthly service charge	Varies by product
Ways to waive service charge	Varies by product
Interest rate/finance charge	For current interest rates, call 800.797.6324
Other fees	Transfer/Advance Fee: $10.00 per transaction Late fee: $10.00
Requirements/ Restrictions	Monthly payment via auto debit Minimum payment: Less than $25: entire balance due $25-$500: $25 plus any past due amount Over $500: 5% of the balance owing plus any past due amount Transfers in increments of $100.00 or the amount of credit available, whichever is less Balance available in Credit Line must be sufficient to cover the entire overdraft balance after posting all transactions at the end of the business day in order for fund transfer to occur

Overdraft Privilege

• Allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction
• Even if you have Overdraft Protection, Overdraft Privilege is still available as a secondary coverage if
  the other protection source is exhausted 
• Please review the "What Else You Should Know" information below

Overdraft Privilege Details

Transactions Covered with Overdraft Privilege for which a fee for paying an overdraft may be imposed	Standard Coverage (No action required)	Extended Coverage (Your consent required)
Checks
ACH - Automatic Debits
Recurring Debit Card Payments
Online Bill Pay Items
Internet Banking Transfers
Telephone Banking
Teller Window Transactions
ATM Transactions Customer’s with Consumer accounts must provide consent in order for Mechanics Bank to authorize and pay overdrafts relating to ATM Transactions
Everyday Debit Card Transactions Customer’s with Consumer accounts must provide consent in order for Mechanics Bank to authorize and pay overdrafts relating to Everyday Debit Card Transactions

What else you should know

As part of Overdraft Privilege, we may authorize and pay checks and other charges that exceed the balance that is available to pay items to your account each day.

Overdraft Privilege (Standard Coverage) provides overdraft coverage for checks, ACH (automatic debits), recurring debit card transactions, teller transactions, and telephone and internet banking transactions.

For Consumer accounts, if you consent to Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the Standard Coverage transactions listed above. Overdraft fees will apply.

You can authorize, decline or revoke Extended Coverage for future transactions by doing one of the following:

• Call us at 800.797.6324
• Complete the online consent form
• Complete the online consent form located in Online Banking under My Resources > Debit Card Overdraft Options
• Complete the online consent form located in Mobile Banking under More > Debit Card Overdraft Options
• Visit any Mechanics Bank branch
• Print and complete the consent form and mail it to us at: Mechanics Bank, P.O. Box 8070, Walnut Creek, CA 94596

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.  

Fees

Should an overdraft occur on your account, our normal fees and charges still apply whether or not the item(s) is (are) paid by the Overdraft Privilege, including:

For Consumer Accounts

• Overdraft or Returned Item fees will not be charged if the balance in your account is overdrawn by $10 or less after posting all transactions at the end of the business day
• We will charge an Overdraft or Returned Item fee of $10 for any item $10 or less that overdraws your account by more than $10 after posting all transactions at the end of the business day
• We will charge an Overdraft or Returned Item fee of $35 for any item greater than $10 that overdraws your account by more than $10 after posting all transactions at the end of the business day
• The maximum Overdraft or Returned Item fees charged per business day is $140
• If your Consumer account balance remains overdrawn for longer than 5 business days, we will charge your account a Continuous Overdraft fee of $5 for each of the consecutive business days the account remains overdrawn, beginning on the 5th business day and ending on the 14th business day

For Business Accounts

• We will charge a $35 Overdraft fee when an item is paid or a $35 Returned Item fee when an item is returned
• A maximum of 10 Overdraft or Returned Item fees ($350) will be charged per business day
• If your Business account balance remains overdrawn for longer than 5 business days, we will charge your account a Continuous Overdraft fee of $5 for each of the consecutive business days the account remains overdrawn, beginning on the 5th business day and ending on the 14th business day.

Your Obligation to Cover Overdrafts

Depositors and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand. Each Authorized Signer will continue to be obligated for all such amounts. Funds from your next deposit may be used to cover any overdrafts; however your account must be brought to a positive balance no later than thirty two (32) days after the initial overdraft occurred for at least one business day.

READ OUR OVERDRAFT PRIVILEGE POLICY

 

If you have any questions or would like more information about overdraft protection options, Overdraft Privilege or Extended Coverage, please call us at 800.797.6324 or stop by a Mechanics Bank branch.