How can I prevent overdraft fees?

An overdraft fee occurs when you try to spend more money than you have available in your checking account. Rather than denying the transaction, the bank will allow the purchase by advancing the funds to cover the purchase, with a nominal charge to your account.

Overdraft fees can involve check, ACH or debit card transactions. Some banks will occasionally forgive an overdraft fee to help you cover other essential expenses from your account. However, it’s best to review your bank’s account agreements to understand the policy on handling overdrafts.

When it comes to protecting yourself from overdraft fees, you have two main options – connecting your Gate City Bank checking account with your savings account or adding a reserve line of credit to provide extra peace of mind:

• Savings Link: Link your savings as a back-up to your checking account. This service will automatically transfer funds from your Gate City Bank savings account to cover any transactions that may otherwise result in an overdraft fee.
• Checking Reserve Line of Credit: With a checking reserve line of credit, you pay finance charges on the amount you borrow in addition to an annual fee. You can even use the line of credit to cover short-term cash needs! Access the application here. Gate City Bank’s checking reserve line of credit amounts include a $1,000 minimum and $5,000 maximum. Other key factors:
  • Revolving, no maturity
  • 18% APR¹ (annual percentage rate)
  • $35 annual fee

Learn more about helpful hints and habits to avoid overdrafts or check out our BankOn checking account for even more ways to steer clear of overdraft fees.

To set up a savings link in online banking, navigate to “Accounts,” choose “Savings Link” and select your back-up account. If you’re using the mobile app, tap “More” at the bottom of your screen, then hit “Accounts” and “Savings Link” before choosing your back-up account. You can also contact us to set up a savings link.

Speak with one of our helpful lenders to learn more about a checking reserve line of credit. They’ll be happy to assist you with the application process!

A phishing scam occurs when a criminal impersonates a trustworthy source to trick you into sharing sensitive personal information, such as passwords or account numbers. They most often reach out through deceiving emails or phone calls.

To avoid becoming the victim of a phishing scam:

• Don’t respond to urgent, unsolicited requests for personal information.
• Don’t share account numbers, card numbers, Social Security numbers, passwords or any other sensitive information, no matter how legitimate the request may seem.
• Do contact us if you’re unsure about the legitimacy of any requests.
• Do regularly review account transactions and contact us if you notice any unauthorized activity.
• Do keep your contact information updated with us in case we need to verify suspicious activity.
• Do contact us immediately if you believe you’ve responded to a phishing attempt.