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Understanding overdraft fees and how to avoid them

Learn when overdraft fees apply, how overdraft protection works, and steps to avoid unexpected charges.

Accounts Checking Fees

What is an overdraft?

An overdraft occurs when a payment or withdrawal exceeds your available checking balance. Depending on your account settings, we may pay the item and charge a fee, or return the item unpaid.

Standard overdraft fee

Halloway Bank & Trust charges $35 per overdraft item, up to a maximum of four fees per day on consumer checking accounts. Business accounts may have different limits.

Overdraft protection options

  • Linked savings transfer — Automatically moves funds from savings when your checking balance is insufficient ($10 transfer fee may apply).
  • Line of credit — Covers overdrafts up to your approved limit; interest applies only to the amount used.
  • Decline option — Decline debit card transactions that would overdraw your account at no charge.

Tips to avoid fees

  • Enable low-balance alerts in online or mobile banking.
  • Track pending transactions and direct deposits.
  • Review your account daily during periods of heavy spending.