Overdraft Programs and Services at The Merrimack

Even with the best money management practices, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned or a transaction denied can be a costly, inconvenient, and potentially embarrassing experience.

At Merrimack County Savings Bank, we do not encourage overdrafts. In every respect, we encourage our customers to manage their finances responsibly. However, we want to save them from the additional merchant fees and possible credit history damage this might result if a check is returned or a payment denied.

What can you do to avoid overdrawing your account if, despite taking all precautions, your balance falls to zero and a payment is presented against your account? The Merrimack offers three approaches to help:

  • CheckReserve Overdraft Line of Credit. This is a line of credit attached to your checking account. The Annual Percentage Rate is 15% and a $25 annual fee applies. A separate loan application is required.
  • Savings-to-Checking Overdraft Transfer. This allows the bank to draw from your designated savings account to cover an overdraft. There is a $5 transfer fee for this program.
  • Courtesy Pay. This is the standard overdraft service for Merrimack County Savings Bank’s personal checking, Maximizer, and Personal Money Fund account customers. With this service, there is an overdraft fee of $27 for each item overdrawn. Overdraft service with Courtesy Pay on your checking and money market accounts is automatic for checks and regularly occurring, preauthorized payments. However, an opt-in is required if you want us to cover overdrafts caused by everyday debit or ATM transactions.

If your account is overdrawn, our system will look to each of these programs or services to cover the overdraft in the order listed above. For example, if you have CheckReserve, we will use that program first. If you don’t have CheckReserve, we’ll look for the Savings-to-Checking Overdraft Transfer option. After those first two options are exhausted, we’ll look to Courtesy Pay.

Customers have told us time after time that they appreciated having their overdrafts covered, even if that meant paying a fee. We are completely supportive of the new rule, however, especially if it helps raise awareness among all consumers of the importance of responsibly managing their checking accounts and cash flow. We will continue to provide all of our overdraft options, including offering the opt-in for everyday debit and ATM transactions.

We want to reinforce the importance of seriously considering your choice to opt in to the everyday debit and ATM transaction portion of our standard overdraft service, Courtesy Pay. Why opt in? One example is to avoid discovering, after completing the family’s weekly grocery shopping, that you have insufficient funds. Without your advance opt-in the transaction would be rejected.

You may opt in by written form, by telephone, or in person. A written opt-in form will be sent with your statement in June or July. Please look out for it and return it, call us or stop by any office. You may also opt in online.

Important details about Merrimack County Savings Bank Courtesy Pay

  • We will not authorize and pay overdrafts for ATM or everyday debit card transactions without your opt-in.
  • An overdraft fee of $27 each time may be imposed for covering overdrafts that result in a negative end of day balance. Overdrafts may be created by check, in-person withdrawal, debit card transaction or other electronic means.
  • For Courtesy Pay consideration, your account is in “good standing” if you make sufficient deposits to bring your account to a positive end-of-day balance at least one every 30 calendar days.
  • Whether your overdraft will be paid is at Merrimack County Savings Bank’s discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have had excessive overdrafts.
  • Merrimack County Savings Bank Courtesy Pay is different from CheckReserve or Savings-to-Checking Overdraft Transfers in that it does not transfer money from a line of credit or savings account.
  • Overdrafts caused by debit card purchases that are set up to bill automatically (like an insurance or health club payment) may continue to be authorized at our discretion even if you do not opt-in to overdraft coverage for ATM and everyday debit cards transactions.