Overdraft Coverage Options


Life happens! Security Bank and Trust Company understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Service Cost
Overdraft Protection Link to Another Deposit Account you have at Security Bank and Trust Company1 $5 fee per transfer
Overdraft Security $32 Return Fee / Overdraft Fee per item per presentment. Daily fees may apply.

1Call us at 1-833-937-7282, email us at ODP@securitybanktn.com, or come by a branch to sign up for these services.

Transactions Covered with Overdraft Security Standard Coverage
(No action required)
Extended Coverage
(Your consent required on consumer accounts) *
Checks X X
ACH – Automatic Debits X X
Recurring Debit Card Payments X X
Online Bill Pay Items X X
Internet Banking Transfers X X
Telephone Banking X X
Teller Window Transactions X X
ATM Withdrawals X*
Everyday Debit Card Transactions X*

*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Security coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Security in its entirety by contacting us at 1-833-937-7382 or sending us an e-mail at ODP@securitybanktn.com.

If you would like to select Extended Coverage for future transactions:

• Call us at 1-833-937-7382

• Complete the online consent form found the top of the page

• Visit any branch

• Complete the enclosed Reg E Consent Form and mail it to us at P. O. Box 1209, Paris, TN 38242

• e-mail us at ODP@securitybanktn.com

What Else You Should Know

  • A link to another account is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance. You can also create Online Banking Alerts to keep you informed about your account in real time. For example, if your account balance falls below a certain amount. 
  • The $32 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $32 per item per presentment. All fees and charges may be included as part of the Overdraft Security limit amount. Your account may become overdrawn in excess of the Overdraft Security limit amount as a result of a fee.
  • If your account balance remains overdrawn for longer than 5 consecutive business days, we will charge your account a daily overdraft fee of $5 for each of the consecutive business days the account remains overdrawn, beginning on the 6th business day.
  • For consumer accounts, there is a limit of 6 Overdraft Fees ($192) per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $10 or less. These exceptions do not apply to business accounts.
  • We generally post items in the following order: 1) Credits, 2) POS/ATM Transactions chronologically, 3) ACH Transactions chronologically, 4) Checks (check number order); however, exceptions will occur, 5) Onus Items by descending amount. Holds on funds and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed.
  • Although under payment system rules, Security Bank and Trust Company may be obligated to pay some unauthorized debit card transactions, Security Bank and Trust Company will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  • Giving us your consent to pay every day debit card and ATM overdrafts may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Security limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • Security Bank and Trust Company authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Security Bank and Trust Company may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Security limit, may be used to authorize and pay a transaction.
  • Merchants may place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described in this letter, Security Bank and Trust Company will not pay items if your account does not contain available funds (including the Overdraft Security limit) to cover the item(s) and the amount of any fee(s).
  • We will restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Security limit.
  • Overdraft Security is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Overdraft Security may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Security, please call us at 1-833-937-7382 or visit any branch.