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Overdraft Fees

What is an Overdraft Fee?
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.

Two Options for Overdraft Fee Protection
Connecting your Gate City Bank checking account with your savings account or adding a reserve line of credit can provide extra peace of mind and protection from overdrafts.

Select the option that’s right for you – savings or credit! Here’s how it works:

  1. 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. $5 per automated transfer.

  2. 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!

Gate City Bank Checking Reserve Line of Credit amounts:

  • $1,000 minimum
  • $5,000 maximum

Other key factors:

  • Revolving, no maturity
  • 18% APR* (annual percentage rate)
  • $25 annual fee

To set up your savings link or talk with a lender, give a call at 701-293-2400 or 800-423-3344, or stop by any of our convenient locations. We will be happy to assist you and answer any questions you may have! Otherwise, you can start your online application today for a checking reserve line of credit.

In addition to overdraft protection, you can take steps to prevent overdrafts, and we offer a free online course to learn more about overdraft fees, including why they occur and how to avoid them.

We’re Here to Help
We are committed to create a better way of life for our customers, communities and team members. This is part of our mission and way of life, and it will not change. Whether you’re experiencing financial hardship or simply lost track of your account balance, we’re here to help. Contact us and we will work with you to find the right solution to meet your needs.

*Current loan qualifications apply. Other terms and conditions may apply. Rates subject to change.