Overdraft Coverage

Overdraft Coverage


Life happens! Prospect Bank understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

overdraft coverage options

Consider these ways to cover overdrafts:



Overdraft Protection (Link to Another Deposit Account you have at Prospect Bank) $2.00 fee per transfer
Overdraft Privilege $30.00 Overdraft Paid Item Charge per item.

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Prospect Bank for a fee.   Call us at 877-465-4154, email us at virtualbranch@bankprospect.com, or come by a branch to sign up or apply for this service.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

  • Eligible Consumer accounts are automatically provided Overdraft Privilege Standard Coverage. No action is required.  However, payment of overdrafts caused by ATM and everyday debit card transactions such as point of sale (POS) transactions will only be authorized if you choose Extended Coverage.
  • Eligible Business accounts are automatically provided Overdraft Privilege Extended Coverage. No action is required.

Please review the “What Else You Should Know” section at the bottom of this page for other important information.

Transactions Covered with Overdraft Privilege Standard Coverage (No action required) Extended Coverage (Your consent required on consumer accounts)*
Checks x x
ACH – Automatic Debits x x
Recurring Debit Card Payments x x
Online Bill Pay Items x x
Online Banking Transfers x x
Telephone Banking Transfers x x
Teller Window Transactions x x
ATM Transactions x*
Everyday Debit Card Transactions x*


*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

If you would like to select Extended Coverage for future transactions, call us at 877-465-4154, visit any branch, complete a consent form by clicking the link below and mail it to us at PO Box 400, Paris, IL 61944, or email us at virtualbranch@bankprospect.com.

Extended Coverage Consent Form

You can discontinue the Overdraft Privilege in its entirety by contacting us at 877-465-4154 or sending us an email at virtualbranch@bankprospect.com.



  • A link to another account may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit mymoney.gov.


  • The $30.00 Overdraft Paid Item Charge that is charged if you overdraw your account more than $10.00 is the same fee amount that is charged if an item is returned as unpaid. If your account is overdrawn by $10.00 or less, the Overdraft Paid Item Charge is $0.00. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Paid Item Charge or a Non-Sufficient Funds (NSF) Returned Item Charge of $30.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.


  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. We generally post items in the following sequence: point of sale and debit card transactions are posted from lowest to highest dollar amount; ATM withdrawals are posted from lowest to highest dollar amount; ACH debits are posted from lowest to highest dollar amount; paper checks are posted in check number order; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Paid Item Charges or Non-Sufficient Funds (NSF) Returned Item Charge assessed.


  • Although under payment system rules, Prospect Bank may be obligated to pay some unauthorized debit card transactions, Prospect Bank will not authorize debit card or ATM transactions unless your account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).


  • Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Paid Item Charges for transactions that we would otherwise be required to pay without assessing an Overdraft Paid Item Charge. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.


  • Prospect Bank authorizes and pays transactions using the available balance in your account. Prospect Bank may place a hold on deposited funds in accordance with our Regulation CC Funds Availability Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Overdraft Privilege Limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.


  • Please be aware that the Overdraft Privilege amount is not included in your available balance provided through Prospect Bank’s online banking, mobile banking, or Prospect Bank’s ATMs.


  • Prospect Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Paid Item Charge may be assessed.


  • Except as described herein, Prospect Bank will not pay items if the available balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s). Any fees assessed may exceed the Overdraft Privilege limit.


  • New consumer and business checking accounts will receive a $100.00 Introductory Overdraft Privilege limit at account opening that will be increased to $500.00 after 30 days in good standing for consumer accounts or to $1,000.00 after 90 in good standing for business accounts.


  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.


  • Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have Overdraft Privilege reinstated.


  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.


If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 877-465-4154 or visit your local branch.