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Overdraft Education and Overview




Our overdraft section provides information about our overdraft processes, fees, products and services to help you prevent unwanted overdraft expenses.


Posting Transactions to Your Checking Account


The bank posts the day’s debits and credits to your account Monday through Friday evenings, excluding bank holidays.


If there are multiple transactions of the same type, the order in which we pay those transactions varies based on the type of transaction, but we will be consistent in how we do that each day.


Let’s assume that you conduct many different types of transactions. Below is the order we would post the transactions to your account:

  1. Add: all deposits made to your account
  2. Deduct: all ATM withdrawals from your account (smallest to largest dollar amount)
  3. Deduct: all debit card transactions (smallest to largest dollar amount)
  4. Deduct: all automatic electronic (ACH or automated clearing house) payments (smallest to largest dollar amount)
  5. Deduct: all cashed checks or teller-based transactions presented for payment in check number order (check number order low to high). If transactions do not have a check number, we deduct them by the smallest to the largest dollar amount.
  6. Finally: we deduct checks that were not cashed at our bank but were received for payment from your account (low to high check number or serial number order)

We pay as many items as we can pay for you in each category to reduce the number of items that would potentially overdraw your account-helping you avoid fees.


One final reminder...

Overdrafts only occur if you spend more than what you have available in your account. Sometimes, because of the many convenient ways you can access your account, it is easy to lose track of your balance.


For more information, please contact us!

Since it is difficult to explain every situation in detail, we would be happy to provide you with additional information at your request. Simply call one of our friendly Customer Service Representatives at (573) 785-8461 or stop by any of our branches and speak with a bank associate.


We are here to help you so please feel free to contact us about any questions you may have.


Frequently Asked Questions


What is an Overdraft?

An overdraft occurs when your account does not have enough money to cover for example, a check that is presented, an ATM or debit card transaction or an online banking transaction. Overdrafts may also occur if you have authorized, for example, your insurance company or gym to automatically deduct payments from your account and do not remember to deduct these amounts from your account. Sometimes people do not remember to mark these payments in their check register.


How do overdrafts happen?

An overdraft happens, for example, when you...

  • Write a check
  • Withdraw money from an ATM
  • Make an automatic bill payment
  • Use your ATM/debit card to make a purchase

...and you do not have enough money in your account, the bank has the choice to either pay or not pay the transaction.

  • If we pay the amount, you will be charged an overdraft fee of $25.
  • If we return your check or automatic payment without paying it, you will be charged an “NSF or non-sufficient funds” fee of $25.

Sometimes the company or person to whom you wrote the check (store, energy company, etc.) may charge you a “returned check” fee in addition to the fee we may charge.


Do you always authorize and pay overdrafts on my account?

We authorize and pay overdrafts on checks and automatic bill payments at our discretion.


Why don’t you authorize and pay overdrafts on my ATM or everyday debit card transactions?

You may not have authorized us to pay these types of transactions. Please see the link below to our Opt-In/Opt-Out Form for more information about these types of transactions.


Opt-In / Opt-Out Form for Overdraft Services


Will you always authorize and pay my overdrafts by ATM or everyday debit card transactions if I give you permission by opting-in?

We pay overdrafts at our discretion, so we cannot guarantee that we will always authorize and pay any type of transaction.


Why would I want to give you permission (opt-in) to authorize and pay overdrafts for my ATM or everyday debit transactions?

We understand that anyone can make a mistake with their checking account – like forgetting to record a payment or not remembering when a company takes an automatic payment that was set up previously. Also, suppose you really need gas for your car – but you go to the station and your card is denied because there isn’t enough money in your checking account. Or, you go to the grocery store and at the checkout your card is denied. By opting-in or giving us permission, these transactions may be authorized. We believe opting-in can save you potential embarrassment and inconvenience.


Are there fees if you pay my overdraft?

We charge you a $25 overdraft fee for each overdraft item we pay with a maximum charge of $150 per day charged.


What is the best way to avoid overdraft or NSF fees?

The best way to avoid overdraft and NSF fees is to manage your account so that you do not overdraw it. Here are some steps to help you:

  • Know how much money you have in your account by keeping your check register current.
  • Record all...
    • Checks when you write them
    • Automatic bill payments
    • ATM/Debit card transactions
  • Check your balance frequently—it takes some checks and payments a few days to clear.
    • Online Banking is an excellent way to check accounts 24/7 from home.
    • Mobile Banking* gives you access to accounts when you're on the go, 24/7.
    • Bank-by-Phone service is available 24-hours-a-day for your convenience.
  • Review your account statements each month.
  • Read or print Balancing Your Account to see helpful tips so you stay on track. You can also ask your branch office for a copy.
  • Mistakes happen sometimes. If you do overdraw your account, deposit money into your account as soon as possible to cover the overdrawn amount plus any fees. This will help you avoid additional overdrafts and fees.
  • Good account management is the best way to protect your hard-earned money.

Is there a way for me to save some money if I overdraw my account?

In fact, yes there is! Below are the Overdraft Services we offer. Our Overdraft Service plans do not have annual fees; just a transfer fee that you only pay when you use the service. So, in case your funds are not readily available in your account, our Overdraft Service plans give you flexibility and save you from having to pay overdraft fees.


  • Overdraft Protection Sweep**
    • You can ask us to link your deposit account (checking) to your savings, money market or another checking account.
    • In case you overdraw your checking account, we automatically transfer funds from the linked accounts to cover the shortage assuming you have sufficient funds in the linked accounts.
    • The bank offers this service free of charge.
  • Overdraft Privilege Service
    • At account opening we will discuss our Overdraft Privilege Service with you.
    • You may be eligible at the time your account is opened for a $100 Overdraft Privilege.
    • This “Privilege” amount enables the bank to pay any debits (up to $100) on your account that would cause your account to be overdrawn. An overdraft fee of $25 will be charged for each item paid. As always, the payment of overdrafts is at the bank’s discretion.
    • After 30 days of the account being opened, a review will be conducted by the bank. If the account is determined to be in good standing and the Overdraft Privilege Service is not being used excessively, the account may qualify for a higher “Privilege” amount of up to $500.
    • Following an overdraft, if your account is not brought to a positive balance within 30 days the bank will suspend your Overdraft Privilege.
    • If you have additional questions about the Overdraft Privilege Service, please call us at (573) 785-8461 or stop by any of our branches and speak with a Customer Service Representative.
  • Other Services
    • You can also set alerts through Online Banking or Mobile Banking to notify you when your account balance drops below the amount you specify. That way, you can transfer or deposit money to avoid overdrawing your account.

Are there additional charges or restrictions for overdraft or insufficient items?

Accounts will be charged the standard Overdraft fee of $25.00 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal, or other electronic item that is paid and $25.00 for items returned. An overdrawn balance must be brought positive within 35 days. We may not pay items under your overdraft privilege if you do not maintain your account in good standing by bringing your account to a positive balance within every thirty-five (35) day period for a minimum of 24 hours, if you default on any loan or other obligation to First Midwest Banks or if your account is subject to any legal or administrative order or levy.



*First Midwest Bank does not charge a fee for you to use Mobile Banking. You must be enrolled for our free Online Banking to access Mobile Banking on your mobile phone. Your mobile phone provider may charge access fees or data usage fees to obtain web access. Message and data rates may apply. Check with your service carrier for more details on specific fees.

**Per Federal regulation, there is a maximum of six (6) preauthorized or automatic transfers per cycle that can be made on a statement savings or money market account.

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