Overdraft Protection Demystified.

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Overdrafts occur when you don’t have enough available funds in your deposit account to cover a transaction but the transaction is still processed by your bank. Items presented for processing may be paid or returned and fees may be charged. Overdraft fees can add up, but they don’t have to. Here is information designed to help you understand:

Overdraft Fees:1 Types and amount charged.

Types of Overdraft Fees


Description of Fee

Insufficient Funds Fee – Item Paid


Fee is applied when an item is paid and that transaction causes your account’s balance to be overdrawn by more than $100.

Unavailable Funds Fee – Item Paid


Fee is applied when an item is paid against funds that were deposited, but not yet available for use. This fee is no longer charged.

Insufficient or Unavailable Funds Item Returned


Whenever an item is presented against insufficient or unavailable funds and the decision is to return the item, this fee is assessed to the account. This fee may still apply for any overdrawn amount.

Sustained Overdraft Fee


After an account has been overdrawn by any amount (negative balance) for five (5) consecutive Business Days and the overdrawn balance at the end of the first day is more than $100, a Sustained Overdraft Fee is assessed to the account on the sixth (6th) Business Day.

Overdraft Protection Transfer Fee


No charge for Overdraft Protection Transfers.

Daily Fee Limits

  • A maximum of three (3) Item Paid overdraft fees may be charged to a customer’s account per business day.
  • Introducing Santander Safety Net: Fees for paid overdraft items will apply only when a transaction posts and the resulting account balance is overdrawn by more than $100.
  • A maximum of three (3) Item Returned fees may be charged per business day.
  • Item Returned Fees may be charged for any overdrawn amount.

Example: Your checking account balance is $2.00 and you perform two transactions, one for $70 and one for $40:

Account Balance


Balance after
Transaction is paid

Fee Charged






Amount of overdrawn balance is less than $100.





Amount of overdrawn balance is greater than $100.

Overdraft Protection

How can I protect my business account and reduce overdraft and associated overdraft fees1?

  • At Santander, we offer Overdraft Protection to cover shortfalls in your business checking account.
  • Overdraft Protection works by transferring available funds from your linked deposit account.
  • If you enroll, shortfalls in your checking account are covered by automated transfers of available funds from the linked account.

Here's how it works:

  • You may link up to three (3) Santander accounts as Overdraft Protection. Linked accounts can be a combination of checking, savings,2 or money market savings.2
  • Transfers are made when there is sufficient available funds in your linked Overdraft Protection account to cover the total overdrawn balance. There is no fee charged for the service! 

The following chart illustrates how linking your Savings2 or Money Market Savings2 account to your Checking Account works to provide Overdraft Protection.

Example: Your checking account balance is $450 and on the same day you have two transactions post to your account, one debit card transaction for $600 and an ACH payment for $700:


Balance in Business Checking Account

Balanced in Linked Savings Account

Initial Balance



Debit Card transaction of $600 is approved, overdrawing the account by $150



ACH payment of $700 is taken from the business checking Account



Available funds transferred from Linked Savings account



Quick Summary:

The balance in the linked savings account was sufficient to cover the overdrawn balance in the business checking account. No insufficient or unavailable overdraft fees were charged. Hence, no fees were charged instead of $70 in Overdraft fees that would have been charged had there been no Overdraft Protection.

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