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We give you time to get out of the red. Overdraw your account, and you have until 9 p.m ET that business day to deposit enough cash at a Flagstar ATM or branch, or make a transfer from a qualified account1 to cover yourself. If you miss the deadline, you may be assessed one or more fees.
$5 transaction threshold. We won’t charge you overdraft or non-sufficient funds fees2 on transactions of $5 or less. Although your account will be debited for the amount of the transaction, the days of smaller purchases like a cup of coffee or a candy bar really hurting your wallet are over.
Negative balance threshold. If you overdraw your account by just pennies, we have your back. There are no overdraft or non-sufficient funds fees until your account exceeds a -$5 balance.
Monitor your account. In addition to depositing cash to your account to cover any overdrafts by 9 p.m. ET that business day, a good practice is to set up customized balance alerts via online or mobile banking. You can also monitor your account and transactions easily with online banking, telephone banking, and our mobile app (where you can get your Instant Balance from the login screen).
Link to one of your deposit accounts. Linking your checking account to one or more of your other qualified1 Flagstar deposit accounts can cover overdrafts automatically. There’s a $10 transfer fee per day3, per linked account—even if there’s more than one transfer throughout the day.
Open an Overdraft Line of Credit (ODLOC). This is a line of credit that is linked to your checking account and will automatically transfer funds to cover overdrafts. There’s a $10 transfer fee per day, and interest begins to accrue immediately.
Utilize Bounce Protection. All eligible Flagstar checking accounts come with Bounce Protection. Covered transactions4 are completed/paid and a $36 Overdraft Charge is assessed per Item. To opt-out of this service, speak with your banker or call (888) 248-6423. Please note that without Bounce Protection, transactions are declined/not-paid and a $36 NSF Charge is assessed per item.
Additional note on overdrafts caused by ATM and one-time debit card transactions:
With Bounce Protection on your account, you can also choose to cover ATM and one-time debit card transactions. This is usually referred to as “Reg E opt-in.” Regulation E requires you to opt-in for Flagstar to authorize and pay these items. An overdraft fee will be assessed. If you choose not to opt-in and your Available Balance will not cover the ATM or one-time debit card transaction, the transaction will be declined, and we will not assess a fee. By default, you are opted out.
If you have any questions about overdraft protection, visit a branch or call (888) 248-6423.
1Qualified deposit accounts are checking, savings, and money market accounts. (Not CDs, IRAs, or HSAs.)
2Flagstar assesses Overdraft Charges when we pay Items that overdraw your account, and NSF Charges (non-sufficient funds fees) are assessed when we return Items that would overdraw your account.
3Reg D limits the number of automatic withdrawals to six times per calendar month for savings and money market accounts. Excess withdrawals can cause fees and account closure.
4You will be assessed a $36 Overdraft Charge for each Item that overdraws your account's Available Balance. Transactions that can cause an overdraft include checks, in-person withdrawals, electronic payments (ACH), online banking, mobile banking, telephone banking, and recurring debit card transactions. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases and assess a $36 Overdraft Charge. We are not obligated to pay any Item presented for payment that would cause your account to be overdrawn. As long as your account is in “good standing” we may approve your overdraft items. You should make every attempt to bring your account to a positive end-of-day balance as soon as possible. If you don’t do so at least once every 30 consecutive days, and leave the balance positive overnight (including the payment of all bank fees and charges), your Bounce Protection may be suspended. If your account remains negative for more than 34 days, we will begin charging you a Consecutive Days Overdrawn fee of $6 each business day the account is negative. Words such as Item and Available Balance have specific meanings which are set forth in your account's Disclosure Guide. Please review the Disclosure Guide carefully to understand the definitions for these words as well as the other charges to our overdraft protection program.
5ODLOC amount varies by your credit score and other factors. Customers with a Flagstar account relationship of 90 days or less are only eligible for up to $1,000.
6Personal Account Bounce Limits: non-interest bearing account=$500; interest-bearing checking account=$1,000; money market account=$1,500.
7Credit approval and income verification required.
8You must deposit at least as much as your bounce limit within 60 days of account opening.