State Bank of Park Rapids offers two types of overdraft protection programs:
1. Transfer of Funds: Set up an automatic transfer from one of your accounts with sufficient funds, such as a savings or money market account, to the checking account that that may become overdrawn if the auto-transfer wasn’t in place. There is a small fee each day an auto-transfer occurs to cover a negative balance in an account, but that fee is far less than an overdraft or NSF fee of $25 per item and, as long as there’s sufficient funds in the account that’s feeding the account that may become overdrawn, you don’t ever have to worry about a check being returned for nonsufficient funds.
2. Freedom Funds: This is a consumer line of credit (a loan) that will automatically transfer funds from the loan to the checking account to cover overdrafts if/when they occur, as long as the maximum amount of the line of credit has not been reached. There is an annual fee for maintaining this line of credit, and interest is charged on the line when there is a balance owed, but Freedom Funds can be a very convenient and relatively inexpensive way to avoid overdraft charges or the possible embarrassment of having a check returned due to nonsufficient funds. For more details, inquire with Jim Heeren, Consumer Loan Officer.
For more information on our overdraft protection programs inquire with your loan officer, new accounts personnel, or our bookkeeping department.