Shawn Kelly Rostron from Bank of Hawaii speaks about how to avoid over drafting your account.
An overdraft occurs when debits from a bank account exceed the available balance in that account. Debits include checks, automatic payments, in-person withdrawals, debit card purchases, transfers from the account, ATM or ACH transactions, or other withdrawals.
How does Bank of Hawaii handle overdrafts?
At Bank of Hawaii, overdrafts can be handled in two different ways:
What are the standard overdraft practices that come with Bank of Hawaii accounts?
We may authorize and pay overdrafts for the following types of transactions*. Please note that the payment of an overdraft is 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, the item will be returned unpaid or the transaction declined and you will be charged a Non-Sufficient Funds Item Returned/Returned Item Fee. If we do authorize and pay an overdraft, a Non-Sufficient Funds Item Paid/Overdraft Fee will apply and you must repay the amount of the overdraft promptly without notice or demand from us.:
We do not authorize and pay overdrafts for the following types of transaction unless preauthorized to do so using Debit Card Overdraft Coverage*. For more information about this service, refer to the section Debit Card Overdraft Coverage.
What fees will be charged if Bank of Hawaii pays an overdraft?
Here are the details of how overdraft fees are assessed under our standard overdraft practices:
The best way to avoid overdrafts is to keep track of all your account transactions.
We offer the following tools to help you manage your funds responsibly and avoid overdrafts:
Overdraft Protection from Savings >
This service can help prevent returned checks and overdrafts on your checking account. If you do not have sufficient funds in your checking account to cover a transaction, we will transfer funds automatically from your designated savings account to your checking account. There are no fees to sign up. However, transfer and other fees1 apply when a transfer is made.
Bankoh CoverCheck >
For added peace of mind, Bankoh CoverCheck provides automatic overdraft protection up to your available credit limit. An application and credit approval are required and there is an annual fee. Certain requirements and restrictions apply, please see Bankoh CoverCheck Agreement and Disclosure Statement for further details.
e-Bankoh Online Banking2 >
With e-Bankoh Online Banking, you can monitor the balances in your accounts and make transfers between your accounts. There is no charge for this service or for transfers between accounts. If you are ready to enroll, click here.
e-Bankoh Mobile Banking3>
Check your available balance before making a purchase using our mobile banking app. Install the Bank of Hawaii app on your iPhone® or iPad® or AndroidTM device, or visit m.boh.com on your mobile device.
SmartMoney Seminars >
Our SmartMoney Seminar focusing on the Basics of Banking will help educate you on how to manage your money. SmartMoney Seminars are free and open to the public.
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, fees or other consequences by the payee (e.g., merchant).
How is my available balance determined?
Your current balance is your balance at the start of the day, plus or minus the day’s transactions. Your available balance is your current balance minus holds. Holds include deposits with a hold on the amount and Visa® debit card holds for purchases you’ve signed for or made online. (Please note that for point-of-sale transactions, some merchants obtain authorizations for only a partial amount [for example, gas stations] or a greater amount [for example restaurants] of the purchase. Therefore, until the actual amount of the transaction is debited from your account, you must factor in the difference.) You can spend up to the amount of your available balance without incurring a fee for insufficient funds.
Your available balance does not include any available Bankoh CoverCheck, Overdraft Protection from Savings, Cash Advantage funds, or any other debits (e.g. recurring debits, checks) that have not been processed. 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.