Advantage Overdraft protection can help ensure you’re never caught short
Limited automatic overdraft protection up to $600 (or $300 for Simply Free checking) applies to consumer checking accounts (excluding teen checking, bounce back checking, money market and savings accounts). Advantage Overdraft is a non-contractual privilege and may be revoked at any time at Prosperity Bank's discretion.
Your account will not be eligible for Advantage Overdraft until it has been open for 30 days. At that time, your account will be reviewed and if it is eligible for Advantage Overdraft, the plan will be activated on your account. The account will be assessed an overdraft charge per item of $35.00 if an insufficient item occurs within the first 30 days the account is opened and will generally cause the account to be ineligible for Advantage Overdraft. If ineligible for Advantage Overdraft, your account may be reevaluated for eligibility after 90 days without an insufficient item.
An Overdraft Charge per item of $35.00 will be assessed for each overdrawn check paid or other withdrawal request resulting in an overdraft, and will be deducted from the $600 or $300 limit. This may result in multiple Overdraft Charges on the same day. A maximum of five Overdraft Charges will be assessed per account per day. If your account is overdrawn by less than $5.00, a reduced Overdraft Charge of $5.00 will be assessed per overdrawn item. A $20.00 Consumer Negative Balance Fee will be assessed any statement period in which your account balance falls below $0.00.
When you withdraw funds from your account by check, in-person withdrawal, ATM withdrawal, or other electronic means for more than the amount in your checking account, you will overdraw your account. Advantage Overdraft offers limited protection so that your withdrawal will be paid. Under this plan, you will still pay an Overdraft Charge, which will be assessed for each withdrawal deducted from the Advantage Overdraft limit, but you will avoid the merchant's returned check fee. Advantage Overdraft is intended for inadvertent overdrafts and should not be used as a replacement for credit. Prosperity Bank reserves the right not to pay an overdraft item if your account is not in good standing, if you are not making regular deposits, or if you have repeated overdrafts.
The Bank's posting order for transactions is chronological on an as presented basis. Account Balance is the ending balance of your account after all transactions have posted for a given day. Available Balance is your prior day Account Balance plus or minus same day transactions (such as ATM, Debit Card, ACH, checks cashed or same day deposits), plus your Advantage Overdraft limit, minus holds. ATM and Debit Card transactions are authorized or pre-authorized against your Available Balance. When ATM or Debit Card transactions are posted to your account, if the transactions cause the current day final Account Balance to fall below $0.00, you will still pay an Overdraft Charge.
ATM card and everyday Debit Card transactions will not be paid under Advantage Overdraft and will be declined at the time of transaction unless you provide us with express prior notice of your intent to have those types of transactions paid into the overdraft. If you authorize us to pay ATM and everyday Debit Card transactions into overdraft, your Advantage Overdraft limit amount will be accessible through ATM withdrawals or everyday Debit Card purchases. Everyday debit card transaction refers to non-recurring transactions. Recurring debit card transactions will be paid and assessed the overdraft charge fee.
You may remove Advantage Overdraft from your account at any time. You may also revoke your authorization to pay ATM and everyday Debit Card transactions into overdraft at any time. Overdrafts should be paid promptly. Failure to resolve an overdraft may result in the removal of the overdraft limit from your account or closure of the account.
Prosperity Bank offers overdraft protection plans that may allow you to avoid having your account go into overdraft. These plans are offered in place of Advantage Overdraft and include automatic transfers from another account or an overdraft line of credit. These plans may be less expensive than our Advantage Overdraft program.
An automatic Overdraft Transfer allows funds to be moved from another Prosperity account to cover an overdraft amount. The $35.00 Overdraft Charge per item would not apply; however, a $10.00 Overdraft Transfer fee may be assessed per transfer. In addition, if funds are transferred out of an interest-bearing account, interest would not be paid on the amount transferred to cover the overdraft. Any customer who is an owner of two deposit accounts (checking, savings, or money market accounts) may have an Overdraft Transfer.
A Readi-Cash Overdraft Line of Credit allows for funds to be advanced on a loan to cover an overdraft amount. The $35.00 Overdraft Charge per item would not apply; however, interest would be assessed on the outstanding balance of the loan at a fixed rate (ask us for the current rate). Advances on a Readi-Cash Overdraft Line occur in $100.00 increments. Monthly payments are required. As a Readi-Cash Overdraft Line of Credit is a loan, it is subject to credit approval.
What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in three different ways:
This notice explains our standard overdraft practices as well as Advantage Overdraft.
What are Prosperity Bank's overdraft practices?
We may authorize and pay overdrafts for the following types of transactions under both our standard overdraft practices and Advantage Overdraft:
We do not authorize and pay overdrafts for the following types of transactions under our standard overdraft practices or under our overdraft protection plans. Under Advantage Overdraft, we do not authorize and pay these types of transactions unless you ask us to (see below):
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft for an ATM or everyday Debit Card transaction, your transaction will be declined.
What fees will I be charged if Prosperity Bank pays my overdraft?
Under our standard overdraft practices and Advantage Overdraft:
What if I want Prosperity Bank to authorize and pay overdrafts on my ATM and Everyday Debit Card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday Debit Card transactions, complete the form below. You may provide or revoke your consent at any time on our website at prosperitybankusa.com or by contacting one of our banking centers in person or by mail. The address of the banking center that opened your account is listed on your account agreement.
By choosing “Opt-In – ATM, everyday Debit Card, checks, other transactions” below, I want Prosperity Bank to authorize and pay overdrafts on my ATM and everyday Debit Card transactions along with checks and other transactions under Advantage Overdraft.
By choosing “Opt-In – checks, other transactions only” below, I want Prosperity Bank to pay checks and other transactions under Advantage Overdraft, but do not want to have Prosperity Bank authorize and pay overdrafts on my ATM and everyday Debit Card Transactions.
By choosing “Opt-Out” below, I do not want Prosperity Bank to pay checks and other transactions under Advantage Overdraft or authorize and pay overdrafts on my ATM and everyday Debit Card transactions.OVERDRAFT Authorization FORM