Have you ever overdrawn your account? In the event that you do—it happens to the best of us—we offer alternative services beyond standard Bounce Protection to keep you covered. Transactions that can cause an overdraft fee include checks, in-person withdrawal, ACH, online banking, mobile banking, telephone banking, and recurring debit card transactions.

Here are your options:


Do It Yourself (personal monitoring) – Simply put, this means taking personal responsibility for your finances. If you suspect that a recent purchase or payment may overdraw your checking account, you can always transfer funds at no cost between your qualified1 Flagstar deposit accounts using online or mobile banking, 24-hour telephone banking, at an ATM, or with a branch banker before the item posts to your account.


Linked Deposit Account(s) – This automatic transfer feature moves funds into your checking account from one or more of your other qualified1 Flagstar deposit accounts to cover overdrafts. There is an automatic transfer fee for each overdrawn item2. (Please refer to the current fee schedule.)


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. An automatic transfer fee applies for each overdrawn item, and interest begins to accrue immediately. (Please refer to the current fee schedule.)


Bounce Protection – Our default, non-contractual, overdraft service covers transactions that result in an overdrawn account. Covered transactions are completed/paid and an overdraft fee is assessed per item. If your account does not have Bounce Protection, transactions are declined/not-paid and an NSF fee is assessed per item. Customers can choose not to participate in the program. (Please refer to the current fee schedule.)


For more information, visit a branch or call (888) 248-6423.

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 no fee will be assessed. By default, you are opted out. If you would like to take advantage of this service, please talk with your banker, call (888) 248-6423, or email inbound@flagstar.com using the subject line "Opt-in." Be sure to give us your full name and indicate your wish to opt-in.

1Qualified deposit accounts are checking, savings, and money market accounts. (Not CDs, IRAs, or HSAs)
2Reg D limits the number of automatic withdrawals to six times per calendar month for savings and money market accounts. Excess withdrawals can cause additional fees and account closure.
3ODLOC 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.
4Personal Account Bounce Limits: Non-interest bearing account = $500; Interest bearing checking account = $1,000; Money Market account = $1,500.
5Credit approval and income verification required.
6You must deposit at least as much as your bounce limit within 60 days of account opening.