Personal Banking

Frequently Asked Question About Overdrafts

1.) What is an overdraft?
An overdraft occurs when you do not have sufficient available funds in your account to cover a payment. For example, a deposit may have been recently made to your account, but the funds may not be available for withdrawal because various types of deposits become available at different times. Our Funds Availability Policy, given to you at account opening and later if amended, describes in detail when different types of deposits become available. If you no longer have this policy, you may call our Customer Service Center 888-225-4636 and request that one be sent to you, or stop by your nearest Cape Cod Five branch office.

2.) What do the new rules pertaining to overdrafts have to do with me?
Currently the Bank may use its discretion to pay your overdrafts that result from ATM and debit card transactions. The new rule provides that you must “opt-in” in order to continue to be eligible for consideration for these discretionary payments, and expressly agree to pay the Bank’s fee for covering this type of overdraft. At this time, the Bank’s fee for paying an overdraft at our discretion is $28 for insufficient funds, $26 for unavailable funds, or $5 for 18/65 accounts.

3.) If I opt in, will the Bank always pay overdrafts on my account that result from ATM and debit card transactions?
No. Even if you opt-in, we cannot guarantee that your ATM and debit card transaction will be paid. The discretionary payment of overdrafts is strictly an accommodation.

4.) How do I opt in?
You may click here to opt in online, visit a Branch or call our Customer Service Center at 888-225-4636.

5.) Does this new rule change the way other discretionary overdrafts on my account are handled?
No. Cape Cod Five will continue to use our discretion to pay overdrafts for certain other situations and then charge an overdraft fee. The situations could include overdrafts caused by checks, electronic or automated bill payments.

6.) What are my other options if I want payments paid when there is not enough money in my account to cover them?
There are a several options available at Cape Cod Five which you can initiate by calling our Customer Service Center at 888-225-4636 or by visiting one of our convenient branches:

(a) You may link your Cape Cod Five checking account to a savings or money market account. If you overdraw your checking account, funds will be taken from your linked account to cover the overdraft, assuming you have sufficient funds available in the linked account to cover the transaction. There is a fee of $5 charged each time you use the linked account to cover an overdraft (Restrictions apply on the number of transfers you may make).

(b) If eligible, you have the option to link your Cape Cod Five checking account to an overdraft line of credit for which fees and interest are charged. If you overdraw your checking account, funds will be taken from your linked overdraft line of credit to cover the overdraft, assuming the account is in good standing and you have sufficient funds in the line of credit account to cover the transaction.

7.) Beyond opting in for the discretionary payment of overdrafts, linking my checking account to a money market or savings account, or establishing an overdraft line of credit, are there other ways to avoid overdrafts?
The easiest way to avoid overdrafts is to keep track of your transactions and account balances. You are also less likely to overdraw if you keep extra money - a cushion - in the account. You can also set up email alerts through Cape Cod Five Online Banking to alert you when your balance falls below a certain level. Monitoring your balances frequently through telephone banking and/or via CC5 Mobile Text can also help you better manage your accounts.