An overdraft doesn’t necessarily mean you’re short of money to cover the purchase. It could simply mean that the money you need is in your savings account, money market account, additional checking accounts, or a Home Equity Line of Credit (HELOC). You are able to transfer money from any one of the types of accounts listed above, to off-set an overdraft on your checking account. You may be wondering how much you have to have in your account; and it really depends on the type of account you open and the dollar amounts of your overdrafts. The key to using Overdraft (pre-authorized) Transfers is that you must sign up for it in advance.
Our Overdraft (pre-authorized) Transfers offer a convenient way to transfer funds from another account with City National Bank &Trust, into a checking account, before the account becomes overdrawn. Transfers are made from your “other” account in increments of $100. This could mean that more money is transferred than you might actually need to cover the overdraft. The Overdraft Transfer fee is $5.
Here is how it works:
If you have $50 in your checking account, but your car payment of $310 came out of your account before you could make a deposit, $300 would be transferred from your “other” account to cover the negative balance. Remember that a $5 fee would be charged for the Overdraft (pre-authorized) Transfer so $5 would be subtracted from the remaining $40 which would leave you with a balance of $35.
Certain account types have restrictions on the number of withdrawals or transactions that can be made on a monthly basis. Please review your account materials to ensure that you do not incur additional fees due to the type of account used for the Overdraft (pre-authorized) Transfer.