Overview

Overdraft Protection at Customers Bancorp is a suite of services intended to prevent transactions from being returned or declined when your account balance is insufficient. This product connects checking accounts to a variety of backup options — such as a linked savings account, a line of credit, or a secondary deposit account — to cover shortfalls automatically. The goal is to provide peace of mind, reduce merchant declines, and offer predictable ways to manage occasional negative balances while maintaining control over fees and repayment terms.

How It Works

When an eligible transaction would overdraw your checking account, Customers Bancorp’s Overdraft Protection evaluates available backup sources in the order you designate. If funds are available in a linked savings account or a pre-approved line of credit, the system transfers or advances the necessary amount to cover the item. Transactions covered this way are honored at the point of sale or processed normally, preventing returned items, declined debit card purchases, and unpaid checks.

• Linked Savings Transfer: Funds are automatically moved from a connected savings account to cover the shortfall.
• Overdraft Line of Credit: A pre-approved credit line advances the required funds; interest and repayment terms apply.
• Secondary Deposit Account: Another deposit account you own can be tapped to cover overdrafts.
• Tiered Coverage: You may choose which sources are used first so you control costs and how advances are repaid.

Key Benefits

• Convenience: Automatic coverage prevents embarrassing declines and reduces the need to visit a branch or call customer service in urgent moments.
• Predictability: Clear options let you choose lower-cost coverage first, such as linked savings before credit-based solutions.
• Protection from Returned Items: Avoid additional merchant fees and potential negative impacts on relationships with billers or landlords.
• Flexible Repayment: When a line of credit is used, typical repayment options and interest information are clearly disclosed.
• Customization: Set transfer thresholds, select the order of coverage, and opt in or out of overdraft services for debit card and ATM transactions if desired.

Enrollment and Eligibility

Enrollment in Overdraft Protection typically requires an eligible deposit account in good standing. For linked savings transfers, the accounts must be held by the same owner. For a line of credit, a credit application and approval may be required, subject to standard credit review and underwriting criteria. Customers Bancorp may restrict or modify eligibility based on account history or regulatory requirements.

To enroll, customers can choose their preferred backup sources and the priority in which they should be used. Many customers find it helpful to choose a low-cost transfer from savings first, followed by a line of credit for larger or unexpected shortfalls.

Fees, Limits and Terms

Overdraft Protection is intended to reduce the incidence of returned items and declined transactions, but it is not free in all configurations. Transfers from linked savings accounts may be free or charged at a nominal fee per transfer depending on the account relationship and current fee schedule. Using an overdraft line of credit will result in interest on the advanced amount, and there may be one-time transaction or advance fees.

Important considerations:

• Fee structure varies by backup source and is disclosed at enrollment.
• Credit-based solutions carry interest and may affect credit scores if not repaid in accordance with the credit agreement.
• There may be daily or per-item limits on coverage amounts and frequency.
• Account holders must keep accounts in good standing to remain eligible for protection services.

Example Scenarios

Scenario 1 — Linked Savings Transfer: You have $25 in checking and a linked savings balance of $500. A $60 debit card purchase is presented. Overdraft Protection transfers $35 from savings to checking, covering the purchase and avoiding a returned item or declined transaction.

Scenario 2 — Line of Credit Advance: Your checking account is at zero and a bill for $300 is presented. If your overdraft line of credit is approved and available, an advance is made for the $300. Interest accrues from the advance date and you can repay the balance under the terms of the credit agreement.

Tips to Manage Overdraft Risk

• Maintain a small buffer in your checking account to reduce reliance on overdraft coverage.
• Link a savings account for lower-cost automatic transfers.
• Set up low-balance alerts via mobile or online banking to receive timely notifications.
• Review your account activity regularly and schedule automatic transfers to keep balances healthy.
• Understand the order of coverage and associated fees so you can design the most cost-effective protection.

Frequently Asked Questions

Will overdraft coverage prevent all declined transactions?

Overdraft Protection will cover eligible transactions up to your selected backup limits and subject to available funds or credit. Some transactions may still be declined if limits are exceeded or if the account is not eligible.

How quickly are transfers or advances made?

Transfers from linked accounts typically occur immediately or within the same business day. Credit advances are made according to the terms of the line of credit and may be subject to additional processing requirements.

Can I change or cancel my Overdraft Protection?

Yes. You can modify your coverage choices, priority order, or opt out of certain types of transaction coverage by contacting Customers Bancorp through your preferred banking channel or by adjusting settings in online banking where available.