First National Bank offers overdraft protection, but it is not automatic and costs money when you use it

First National Bank does allow overdrafts on checking accounts, but only if you have enrolled in their overdraft protection program. Without it, transactions that would take your balance below zero are straightforward declined at the point of sale or ATM. If you do enroll, the bank will cover the shortfall—but they charge a fee each time, typically $35 per overdraft transaction as of the last update to their fee schedule. The fee applies whether you overdraft by $5 or $500.

Overdraft protection is not the same as a line of credit. The bank is not lending you money in the traditional sense. They are covering individual transactions that would otherwise fail, then charging you for that service. You repay the overdraft straightforward by depositing money back into your account—there is no separate loan to pay off, no interest rate, and no repayment schedule. The fee is the only cost, unless your account stays negative for an extended period, in which case additional fees may explore.

Key Takeaways

  • First National Bank requires you to opt into overdraft protection; it does not happen by default, and you can request it be turned off at any time.
  • Each overdraft transaction triggers a single fee of approximately $35, charged to your account regardless of the overdraft amount.
  • Overdraft protection covers debit card purchases, checks, and ACH transfers, but not all transaction types are covered under the same terms.
  • You can check your overdraft status and history through First National Bank's online banking portal or by calling customer service.
  • If you frequently overdraft, the cumulative fees can exceed the cost of a small personal loan, making it worth exploring alternatives.

Which transactions First National Bank will and will not cover

First National Bank's overdraft protection applies to most everyday transactions, but the coverage is not universal. Debit card purchases and ATM withdrawals are covered if you have overdraft protection enabled. Checks and ACH transfers (electronic bill payments and direct deposits) are also typically covered, though some banks treat checks differently—First National Bank generally covers them, but the timing can matter if multiple checks hit your account on the same day.

Wire transfers and external transfers to accounts at other banks are usually not covered by overdraft protection. If you attempt a wire transfer and do not have sufficient funds, the transaction will be declined outright. The same applies to some recurring bill payments set up through third-party services rather than directly through First National Bank's bill pay system. Before relying on overdraft protection for a specific payment, confirm with the bank whether that transaction type is covered.

How to enroll in or turn off overdraft protection

To enroll in overdraft protection at First National Bank, you can visit a branch in person, call their customer service line, or log into your online banking account. The process is straightforward and takes a few minutes. You will be asked to confirm that you understand the fee structure—that each overdraft costs money—and then the protection is activated on your account. Some First National Bank branches may require you to sign a brief agreement, though many now handle this entirely online.

If you want to turn off overdraft protection, you can do so through the same channels. Disabling it means transactions that would overdraft your account will be declined instead. This prevents surprise fees but also means your debit card or check may be rejected at the register or by a merchant. Many people disable overdraft protection to avoid accumulating fees, then re-enable it if they know a large deposit is coming and want a buffer for a few days.

What happens if you overdraft multiple times in a short period

Each overdraft transaction incurs its own fee. If you overdraft five times in one week, you will be charged five separate $35 fees—a total of $175 in overdraft charges alone. First National Bank does not cap the number of overdraft fees you can incur in a day or week, so it is possible to rack up substantial charges very quickly if your account dips negative repeatedly.

Additionally, if your account remains negative for more than a few days, First National Bank may charge an additional fee for maintaining a negative balance. This is separate from the per-transaction overdraft fee. The exact threshold and fee amount vary, so check your account agreement or call customer service to confirm the current policy. If your account stays negative for an extended period—typically 30 days or more—the bank may close your account and report you to ChexSystems, a banking history database that can make it harder to open accounts elsewhere.

Overdraft fees compared to other borrowing options

A $35 overdraft fee for a single transaction may seem reasonable in an emergency, but the cost adds up quickly if overdrafts become a pattern. If you overdraft twice a month, you are paying $840 per year in fees alone. By comparison, a small personal loan from First National Bank or another lender typically carries an interest rate of 8 to 15 percent annually, which on a $500 loan would cost $40 to $75 per year—far less than repeated overdraft fees.

A credit card cash advance is another option, though it also carries fees and a higher interest rate than a standard purchase. A line of credit, if you may have access to, is usually cheaper than overdraft protection over time. Even a payday loan, despite its reputation, may cost less than multiple overdrafts if you are in a tight spot for just a few weeks. The point is not to recommend any of these alternatives, but to show that if overdrafting is becoming routine, the math suggests exploring other ways to cover short-term shortfalls.

How to avoid overdraft fees

The simplest way to avoid overdraft fees is to keep a buffer in your checking account—money you do not spend, so your balance never actually hits zero. Even $100 or $200 can absorb most unexpected expenses or timing mismatches between when you spend money and when deposits clear. If a buffer is not realistic for your situation, turn off overdraft protection so transactions are declined rather than covered and charged.

Setting up account alerts through First National Bank's online banking can also help. You can configure the bank to send you a text or email when your balance falls below a certain threshold—say, $200. This gives you a chance to move money between accounts, deposit a check, or contact your employer about early payment before you actually overdraft. Some First National Bank accounts also offer automatic transfers from a savings account to checking if the balance drops below a set level, though this feature may only be available on certain account types or require a minimum balance in savings.

Frequently Asked Questions

Does First National Bank charge overdraft fees if I have overdraft protection turned off?

No. If overdraft protection is disabled, transactions that would take your balance negative are straightforward declined. You will not be charged a fee, but the transaction will fail—your card will be declined at the register, or your check will bounce. You can turn overdraft protection off at any time through online banking or by calling customer service.

How long does it take for an overdraft fee to appear on my account?

Overdraft fees typically post to your account within one to three business days of the transaction that caused the overdraft. The exact timing depends on when the transaction clears and when the bank processes fees. You can see pending overdraft charges in your online banking account before they officially post.

Can First National Bank reverse an overdraft fee if I ask?

First National Bank may reverse one overdraft fee if you contact them and explain the situation, particularly if it is your first overdraft or if you have been a customer for a long time. There is no may provide, and the bank is not required to reverse fees. Asking costs nothing, but do not count on it happening.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is the service that allows transactions to go through even when your balance is insufficient. Overdraft fees are the charges the bank imposes for providing that service. You can have overdraft protection enabled without ever paying a fee—if your balance never goes negative, no fee is charged.

If I overdraft, will it affect my credit score?

Overdrafting your checking account does not directly affect your credit score because checking account activity is not reported to credit bureaus. However, if your account goes unpaid for an extended period and First National Bank sends it to collections, that can damage your credit. Additionally, overdraft activity may appear on ChexSystems, which banks use to decide whether to open accounts for you.