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In a fast-paced world, even the most organized person can find themselves facing a transaction that is declined or an unexpected withdrawal that puts their account out of balance.1 At Flagstar, we understand that life gets hectic sometimes, so this page features the information you need to control what happens next.
If a transaction reaches your checking account but there aren’t enough available funds to cover it, what happens? The item can be returned unpaid as a non-sufficient funds (NSF) transaction or paid as an overdraft transaction.1 Here’s how it works:
It’s completely up to you. Choose a DIY approach or link your Flagstar checking account to another Flagstar account for peace of mind. Not sure what to choose? Our experienced bankers are always happy to help.
You can skip overdraft protection and monitor your account yourself using online, mobile, and telephone banking. You can transfer funds via online, mobile, or telephone banking; stop by a Flagstar branch; or make a qualifying deposit via ATM or mobile banking before 4 p.m. ET the next business day to prevent returned transactions.3
Another option is to link your checking account to a Flagstar savings, money market, or checking account. Then, if your checking account doesn’t have enough funds to cover a transaction presented for payment, we’ll automatically move funds from the linked account to make up the difference.
1Your account is overdrawn when your Available Balance is less than zero. If we pay an Item which exceeds your Available Balance, the transaction will be considered an overdraft transaction, and your account will be considered overdrawn. If an Item exceeding your Available Balance is presented for payment and we return the Item unpaid, the transaction would be considered a non-sufficient funds transaction.
2Not all devices supported. Available for eligible personal and business deposit account customers only.
3To be a qualifying overdraft deposit, the deposit must be: (1) of funds with same-day availability under our funds availability disclosure; (2) in an amount set forth in the next paragraph; (3) made to the overdrawn account; and (4) if the deposit will include cash or check, made at any of our branches up to the daily closing time of the branch on that business day, or at a full-service ATM located on the premises of one of our branches by 4 p.m. ET the next business day. A full-service ATM is an ATM that accepts deposits in addition to dispensing cash. If items exceeding your available balance were paid, the qualifying overdraft deposit must be in an amount that, when all debits and credits to your account for that business day have been posted, results in your available balance being at least $0. A deposit made after 4 p.m. ET on the next business day or made on a day that is not a business day is deemed to be made on the following business day.
4Linked account means another account on which you are an owner, such as a savings, money market, or checking account, which you requested we link to your checking account for overdraft protection purposes. If your linked account earns interest, you should decide whether the amount of overdraft charges on your checking account you anticipate you will avoid under the linked account arrangement will be greater than the amount of interest you will forgo by having funds transferred from the linked account. You may request our Truth-in-Savings Disclosures for the type of account you propose to use as a linked account. It offers information regarding how interest is determined on the linked account and any minimum balance or other requirements to earn interest on the linked account.
This information is subject to change. See the complete Disclosure Guide for further information.