Understanding Overdraft Fees and How to Prevent Them

Broadway Bank is committed to keeping our customers knowledgeable about the products and services we offer.

An overdraft is when you spend more money than you have available in your account. Broadway Bank offers solutions to assist you in managing payments of items when your account does not have sufficient funds.

Broadway Bank’s courtesy overdraft coverage1 is available on your qualified checking account to cover certain transactions—check, ACH, and recurring debit payments—should your checking account drop below a zero balance.

However, the courtesy overdraft coverage does not cover everyday debit card or ATM transactions. These transactions may be covered by opting-in to our debit card overdraft coverage solution. You can add (opt-in) or remove (opt-out) the debit card overdraft coverage at any time.

Woman reviewing her overdraft protection on her phone at home

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 two different ways:

  1. We have standard overdraft practices that come with your account.
  2. We also offer overdraft protection plans, such as a link to a savings account or to an overdraft line of credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments
  • ACH transactions
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):
  • ATM transactions
  • Everyday 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, your transaction will be declined.

What fees will I be charged if the Bank pays my overdraft?
Under our standard overdraft practices:

  • We will charge you a fee of $35.00 each time we pay an overdraft (maximum of 6 fees per day).
  • There is a daily limit of six (6) total fees we can charge you for overdrawing your account (Overdraft and Uncollected funds fees).

What if I want the Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, complete the Consent Form below, call (210) 283-6611 or (800) 531-7650, visit a Financial Center, or print and complete this form using the Print Disclosure button below and mail it to:

Deposit Operations
P.O. Box 17001
San Antonio, Texas 78217-0001

Download or Print this Information

Choose the overdraft coverage option that's best for you.

Debit Card Overdraft Coverage

By opting-in to debit card overdraft coverage, Broadway Bank may cover your purchase—up to your customized set limit—so your ATM or debit card transaction doesn’t get declined despite having insufficient funds. If the bank authorizes the ATM or debit card transaction, you will incur an overdraft fee of $35 (as set forth in our fee schedule).

Linked Account

Protect your account from overdraft fees by linking your personal checking account to another Broadway Bank checking, savings or money market account.

Overdraft Protection Line of Credit<sup>2</sup>

An Overdraft Protection Line of Credit (ODLOC) can be used to cover shortages in your account.

Other Ways to Help Manage and Avoid Overdraft Fees

Sign Up for Alerts<sup>3</sup>

Our Online and Mobile Banking offers alerts that can be customized to fit your needs via email, text and push notifications. Elect to receive only the alerts you want—including when your balance reaches a set threshold—so you know when your balance is low. Sign in to Online and Mobile Banking to set up alerts.

Direct Deposit Early Pay<sup>4</sup>

Take advantage of Broadway Bank’s Direct Deposit Early Pay. With this service, you may receive your automated direct deposit one day earlier than when it’s usually available.

Overdraft FAQs

The overdraft coverage affects ATM and everyday debit card transactions only. Checks, ACH and recurring debit card transactions are not impacted.
Everyday debit card transactions include one-time purchases or payments at grocery stores, gas stations or other merchants. Recurring debit card transactions are set up to pay automatically and include recurring insurance premiums and gym membership dues.
We understand that you may occasionally need to make a transaction that exceeds the balance in your account. Your authorization allows Broadway Bank to consider paying the overdraft.
Overdrafts are paid at the bank's discretion. We do not guarantee that we will always authorize and pay any transaction type when there is not enough money available in your account to cover the item.
Yes, your ATM and everyday debit card transactions will be declined if there are insufficient funds available in your account to cover a purchase.
There is no fee for this coverage if you never use it. If the bank authorizes an item that overdraws your account, a fee of $35 will be charged (as outlined in our fee schedule).
Yes.  Broadway’s Overdraft Protection (linked accounts) allows us to automatically transfer from your Broadway savings account, checking account or an overdraft line of credit if the balance in your checking account isn’t sufficient to pay an item. However, because the Overdraft Protection program is part of our Overdraft Services system, if you don’t have enough money in your checking account, your everyday debit card purchases and ATM withdrawals will be declined, regardless of the balance in your linked accounts, unless you add (opt-in) to overdraft coverage.

Overdraft Coverage

To get started or learn more, contact your nearest Financial Center or call our customer service call center at (800) 531-7650.

1Overdrafts are paid at our discretion. Our overdraft fee is $35 per item, whether by check, ATM withdrawal, debit card transaction, or other electronic means. We do not guarantee that we will always authorize and pay any type of transaction. For example, we typically do not pay overdrafts if your account is not in good standing. If your account is overdrawn, you must immediately bring your account to a positive balance.
2Subject to credit approval. Interest starts to accrue upon advances.
3Subject to terms and conditions. Message and data rates may apply.
4Direct deposit and early payment of funds are subject to the timing of originator funding.

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