What You Need to Know about Overdrafts and Overdraft Fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in three different ways:

  1. We have standard overdraft practices under which, items will typically be returned unpaid.
  2. We offer our Overdraft Privilege program to qualifying customers. Overdraft Privilege is a non-contractual privilege that allows items to be paid into the overdraft up to a total of $800.
  3. We also offer other ways of covering your overdrafts that may be less expensive, such as automatic transfers from another account (such as your savings account) or CheckLine Overdraft Protection. To learn more, ask us about these plans.

This notice explains our standard overdraft practices as well as Overdraft Privilege.

  • What are BankEast’s overdraft practices?
    We may authorize and pay overdrafts for the following types of transaction under both our standard overdraft practices and Overdraft Privilege, even if you do not request overdraft coverage for other types of transactions:
    - Checks and other transaction made using your checking account number
    - Automatic bill payments

  • Effective July 1, 2010, we will not authorize and pay your overdrafts for the following types of transactions under our standard overdraft practices. Under Overdraft Privilege, we will not authorize and pay these types of transactions unless you ask us to:
    - ATM withdrawals, unless you tell us you want overdraft coverage for these transactions.
    - Debit card purchases you make at a store, online, or by telephone, unless you tell us you want overdraft coverage for these transactions.

Even with Overdraft Privilege coverage, BankEast does not guarantee that your overdrafts will be paid. If we decide to pay an overdraft, you will be charged fees as described below. If we do not authorize and pay an overdraft, your transaction will be declined.

  • What fees will I be charged if BankEast pays my overdraft?
    - BankEast will charge you a fee of $32.95 each time we pay an overdraft on your behalf.
    - There is no limit on the daily fees we can charge you for overdrawing your account.

  • What if I want BankEast to authorize and pay overdrafts on my ATM and debit card transactions?
    To request overdraft coverage for your ATM withdrawals and debit card purchases, or for more information about other alternatives we offer for covering overdrafts, please contact us by one of the following methods:
    - Call 865-540-5800 or any BankEast location
    - Click here to read our FAQs about Overdrafts and Regulation E
    - Complete the form below and drop it off at any BankEast location, or mail it to BankEast, Reg. E Department, P.O. Box 24, Knoxville, TN 37901.

If we receive your decision prior to July 1, 2010, it will be effective on July 1, 2010. After July 1, 2010, your decision will be effective no later than the fifth business day after we receive your request. This notice applies to all of your consumer deposit accounts.

¨ I want overdraft coverage for my ATM withdrawals and debit card purchases.
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