Standard Overdraft Practices
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. If we are presented with an item drawn against your account, we will pay the item based on your available balance. The available balance is the amount of funds you can use for withdrawal from your account without causing an overdraft.
Berkshire Bank has Standard Overdraft Practices that come with each account. For more information refer to our Courtesy Pay option. 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.
Generally, we do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We do not authorize and pay overdrafts on the following types of transactions unless you ask us to:
- ATM transactions
- Everyday debit card transactions
We will charge you a fee of up to $35.00 each time we pay an:
- Overdraft created by check, in-person, withdrawal, or other electronic means
- UAF (Uncollected/Unavailable Funds) Overdraft
- We will charge a maximum of five (5) per item fees per day for consumer accounts
- In addition, a Continuous OD (Overdraft) Fee of $35.00 will be imposed every five (5) business days until you bring your account positive. This fee is applied to your account when it has been overdrawn for five (5) or more consecutive business days. A maximum of 5 charges or $175 will be charged for each time period your account remains in a negative status. Other fees can lead to a negative balance, which can lead to additional fees.
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, please contact us at 1-800-773-5601, visit any Berkshire Bank branch, or change your Opt In option through your Online Banking account.
If you change your mind and wish to remove your consent, please contact us at 1-800-773-5601 or visit any Berkshire Bank branch, or change your Opt In option through your Online Banking account.
Overdraft Protection Plans
Berkshire Bank also offers overdraft protection plans, such as a link to a savings account, or an overdraft line of credit, which may be less expensive than our standard overdraft services.
Automatic Transfer Service
Save money and gain peace of mind with our Automatic Transfer Service for overdraft protection. You may have automatic transfers set up from your savings or money market account to your checking account; or an established business line of credit account and/or funds transfer from a designated asset account. We will charge you a fee of $10.00 for each transfer to pay an item from your linked Berkshire Bank deposit account.
Please note transfer limitations apply from a statement savings or money market account to another account or to third parties by preauthorized, automatic, online banking, telephone transfer, check, draft, or similar order to third parties are limited to six per monthly statement cycle. You will be charged a $15.00 for each time you exceed the limit.
You may also apply for Reddi-Cash, a personal line of credit, for use as overdraft protection. Reddi-Cash automatically transfers enough money to your checking account to cover your items if you do not have enough money in your account to cover them.
Please note that this personal line of credit is subject to credit application and approval.