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Overdraft Protection

Advantage Overdraft protection can help ensure you’re never caught short

Limited automatic overdraft protection up to $600 (or $300 for Simply Free checking) applies to consumer checking accounts (excluding teen checking, bounce back checking, money market and savings accounts) without other overdraft protection products. Advantage Overdraft is a non-contractual privilege and may be revoked at any time at Prosperity Bank's discretion.

Your account will not be eligible for Advantage Overdraft until it has been open for 30 days. At that time, your account will be reviewed and if it is eligible for Advantage Overdraft, the plan will be activated on your account. The account will be assessed an overdraft charge per item of $35.00 if an insufficient item occurs within the first 30 days the account is opened and will generally cause the account to be ineligible for Advantage Overdraft. If ineligible for Advantage Overdraft, your account may be reevaluated for eligibility after 90 days without an insufficient item.

An Overdraft Charge per item of $35.00 will be assessed for each overdrawn check paid or other withdrawal request resulting in an overdraft, and will be deducted from the $600 or $300 limit. This may result in multiple Overdraft Charges on the same day. A maximum of eight Overdraft Charges will be assessed per account per day. If your account is overdrawn by less than $5.00, a reduced Overdraft Charge of $5.00 will be assessed per overdrawn item. A $20.00 Consumer Negative Balance Fee will be assessed any statement period in which your account balance falls below $0.00.

When you withdraw funds from your account by check, in-person withdrawal, ATM withdrawal, or other electronic means for more than the amount in your checking account, you will overdraw your account. Advantage Overdraft offers limited protection so that your withdrawal will be paid. Under this plan, you will still pay an Overdraft Charge, which will be assessed for each withdrawal deducted from the Advantage Overdraft limit, but you will avoid the merchant's returned-check fee. Advantage Overdraft is intended for inadvertent overdrafts and should not be used as a replacement for credit. Prosperity Bank reserves the right not to pay an overdraft item if your account is not in good standing, if you are not making regular deposits, or if you have repeated overdrafts.

ATM card and Debit Card transactions will not be paid under Advantage Overdraft and will be declined at the time of transaction unless you provide us with express prior notice of your intent to have those types of transactions paid into the overdraft. If you authorize us to pay ATM and Debit Card transactions into the overdraft, your Advantage Overdraft limit amount will be accessible through ATM withdrawals or debit card purchases.

You may remove Advantage Overdraft from your account at any time. You may also revoke your authorization to pay ATM and Debit Card transactions into the overdraft at any time. Overdrafts should be paid promptly. Failure to resolve an overdraft may result in the removal of the overdraft limit from your account or closure of the account.

Prosperity Bank offers overdraft protection plans that may allow you to avoid having your account go into the overdraft. These plans are offered in place of Advantage Overdraft and include automatic transfers from another account or an overdraft line of credit. These plans may be less expensive than our Advantage Overdraft program.

An automatic Overdraft Transfer allows funds to be moved from another Prosperity account to cover an overdraft amount. The $35.00 Overdraft Charge per item would not apply; however, a $10.00 Overdraft Transfer fee may be assessed per transfer. In addition, if funds are transferred out of an interest-bearing account, interest would not be paid on the amount transferred to cover the overdraft. Customers should also be aware that federal regulations limit the number withdrawals from a savings or money market account. Any customer who is an owner of two deposit accounts (checking, savings, or money market accounts) may have an Overdraft Transfer.

A Readi-Cash Overdraft Line of Credit allows for funds to be advanced on a loan to cover an overdraft amount. The $35.00 Overdraft Charge per item would not apply; however, interest would be assessed on the outstanding balance of the loan at a fixed rate (ask us for the current rate). Advances on a Readi-Cash Overdraft Line occur in $100.00 increments. Monthly payments are required. As a Readi-Cash Overdraft Line of Credit is a loan, it is subject to credit approval.

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 that come with your account, under which items will typically be returned unpaid.
  2. We offer our Advantage Overdraft program to qualifying customers. Advantage Overdraft is a non- contractual privilege that allows items to be paid into the overdraft up to a limit of $600 or $300.
  3. We also offer overdraft protection plans that allow you to avoid having your account go into the overdraft. These plans are offered in place of Advantage Overdraft and include automatic transfers from another Prosperity Bank account (such as a savings account) or an overdraft line of credit, each of which may be less expensive than our standard overdraft practices or the Advantage Overdraft program. To learn more, ask us about these plans.

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

What are Prosperity Bank's overdraft practices?

We may authorize and pay overdrafts for the following types of transactions under both our standard overdraft practices and Advantage Overdraft:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions under our standard overdraft practices or under our overdraft protection plans. Under Advantage Overdraft, we do not authorize and pay these types of transactions unless you ask us to (see below):

  • ATM transactions
  • Debit card transactions

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 for an ATM or debit card transaction, your transaction will be declined.

What fees will I be charged if Prosperity Bank pays my overdraft?

Under our standard overdraft practices:

  • We will charge you a fee of up to $35 each time we pay an overdraft.
  • There is no limit on the total fees. We can charge you $35 for each insufficient item.
  • A $20 Consumer Negative Balance Fee will be assessed any statement period in which your account balance falls below $0.00

Under Advantage Overdraft:

  • We will charge you a fee of up to $35 each time we pay an overdraft up to a maximum of eight fees per day.
  • If your account is overdrawn by less than $5, we will instead charge you a fee of $5 per overdraft item.
  • A $20 Consumer Negative Balance Fee will be assessed any statement period in which your account balance falls below $0.00.

What if I want Prosperity Bank to authorize and pay overdrafts on my ATM and debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and debit card transactions, complete the form below. You may provide or revoke your consent at any time on our web site at prosperitybankusa.com or by contacting one of our banking centers in person or by mail. The address of the banking center that opened your account is listed on your account agreement.

By choosing “Opt In – ATM, debit card, checks, other transactions” below, I want Prosperity Bank to authorize and pay overdrafts on my ATM and debit card transactions along with check and other transactions under Advantage Overdraft.

By choosing “Opt In – checks, other transactions only” below, I want Prosperity Bank to pay checks and other transactions under Advantage Overdraft, but do not want to have Prosperity Bank authorize and pay overdrafts on my ATM and debit card Transactions.

By choosing “Opt Out” below, I do not want Prosperity Bank to pay checks and other transactions under Advantage Overdraft or authorize and pay overdrafts on my ATM and debit card transactions.

OVERDRAFT Authorization FORM
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