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Understanding Overdrafts

Learn about overdrafts and services to help you manage your accounts.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we (Bank of Hawaii) pay it anyway. “Not enough money in your account” means the available balance in your account is not sufficient to cover the transaction(s), even if your current balance would be enough to cover it.

How does Bank of Hawaii handle overdrafts?
At Bank of Hawaii, overdrafts can be handled in two different ways:

  • We have standard overdrafts practices that come with Bank of Hawaii accounts.
  • We also offer overdraft protection plans, for which you may enroll or apply for, such as Overdraft Protection from Savings and Bankoh CoverCheck.

Standard Overdraft Practices >
We have standard overdraft practices that come with your account. Click the link above for more information about our standard overdraft practices.

Overdraft Protection from Savings >
Overdraft Protection from Savings is a service that you can enroll into that enables automatic transfers from your savings account to your checking account to cover a net overdraft in the checking account at the end of the business day.

Bankoh CoverCheck >
Bankoh CoverCheck is an unsecured personal line of credit that requires credit approval.

Debit Card Overdraft Coverage >
Our Debit Card Overdraft Coverage is an option for your checking account that may pay the occasional or unintended overdraft for ATM transaction and/or one-time debit card transactions.

Other Account Management Tools >
The best way to avoid overdrafts is to keep track of all your account transactions. Learn more about our Online and Mobile Banking services.

What is an overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we (Bank of Hawaii) pay it anyway. “Not enough money in your account” means the available balance in your account is not sufficient to cover the transaction(s), even if your current balance would be enough to cover it.

How does Bank of Hawaii handle overdrafts?

We have standard overdraft practices that come with your account. We also offer overdraft protection plans, for which you may enroll or apply for, such as Overdraft Protection from Savings and Bankoh CoverCheck.

How do Bank of Hawaii’s standard overdraft practices work?

At our discretion, we may authorize and pay overdrafts for checks, automatic bill payments and other transactions made using your checking account number. A fee generally applies whether the overdraft item is paid or returned.

What if I don’t want Bank of Hawaii to authorize and pay overdrafts for checks and automatic bill payments?

You can visit a branch to decline our standard overdraft practices if you do not want Bank of Hawaii to authorize and pay overdrafts for checks and automatic bill payments. If you decline our standard overdraft practices, we will generally only authorize and pay items when there is enough money in your available balance. If your available balance is not enough to cover an item, we generally return the item and charge you a Non-Sufficient Funds Returned Item Fee.

How does Bank of Hawaii handle ATM transactions and everyday one-time debit card transactions?

We do not authorize and pay overdrafts for ATM and/or one-time debit card transactions unless preauthorized to do so using Debit Card Overdraft Coverage. For more information about this service, refer to the section Debit Card Overdraft Coverage.

When there are insufficient funds, what is the benefit to having my transaction paid?

If the bank pays your transaction, this may prevent finance charges, late charges, and other consequences by the payee (e.g., merchant, landlord, creditor, etc.).

When do I need to repay my overdrafts?

You must repay the overdraft promptly. Subsequent deposits and other credits to the account may be used to repay an overdraft, regardless of the source of the deposit.

How can I avoid overdrafts on my account?

The best way to avoid overdrafts is to keep track of all your account transactions and understand how your available balance is determined. We also offer several tools to help you keep track of your current and available balances and posted transactions, or alert you via email if your balances dip below a threshold you determine. For more information, visit our Online and Mobile Banking page.

How is my available balance determined?

Your available balance is:

  • your account's balance at the start of each business day
  • plus the full amount of all credits
  • less that days transactions
  • less all holds

 

Holds include deposits with a hold on the amount and debit card holds (when a merchant seeks and we provide an authorization for a debit card payment transaction.)

Available balance reflects our most current record of the amount of money in your account that is available for you to use. We use the available balance to authorize your transactions during the day. We also use your available balance to pay your items at posting. Your available balance (and not current balance) is used to determine when your account is overdrawn.

Important Note: Your available balance does not reflect every transaction you have initiated or previously authorized. To avoid overdrafts, it is very important for you to keep track of all transactions you have made in your account.

For example, your available balance does not include the following:

  • Available funds in a linked account under an overdraft protection plan. (For more information about the different options available, refer to the section Understanding Overdrafts.)
  • Outstanding checks and authorized automatic withdrawals

Your current and available balances are accessible through e-Bankoh Online Banking, Bankoh by Phone, Bank of Hawaii branches, and Bank of Hawaii ATMs and receipts. Additional information about e-Bankoh Mobile Banking balances can be found here.