Overdraft Protection Demystified.

Overdraft Protection Demystified.


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 that puts the account balance into a negative balance.

Unavailable Funds Fee – Item Paid


Fee is applied when an item is paid against funds that were deposited, but not yet available for use.

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.

Sustained Overdraft Fee


After an account has been overdrawn by any amount (negative balance) for five (5) consecutive business days, a sustained overdraft fee is assessed to the account on the sixth (6th) business day.

Overdraft Protection Transfer Fee


Fee is:

  • Charged each day a transfer occurs,
  • Included in the amount of the transfer, and
  • Charged to the destination account when the transfer is made.

Daily Fee Limits

  • A maximum of six (6) Item Paid overdraft fees may be charged to a customer’s account per business day.
    - Paid overdraft item fees apply only when a transaction posts and the resulting account balance is overdrawn more than $5.00.
  • A maximum of six (6) Item Returned fees may be charged per business day.

Example: Your checking account balance is $2.00 and you perform two transactions, one for $4.20 and one for $4.50:

Account Balance


Balance after
Transaction is paid

Fee Charged






Amount of overdrawn balance is less than $5.





Amount of overdrawn balance is greater than $5.

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 or an approved Small Business Overdraft Protection Line of Credit.3
  • 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 money market savings,2 or a Small Business Overdraft Protection Line of Credit.3
  • On any day a transfer is made to your account from either a linked deposit account or overdraft line of credit, a $12 Overdraft Protection Transfer Fee is included in the transfer amount.
  • Transfers are made when the total overdrawn balance plus the transfer fee is available in your linked Overdraft Protection account.

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


Balance in Business Checking Account

Balanced in Linked Savings Account

Initial Balance



Debit Card transaction of $600 is approved, overdrawing the account by $100



ACH payment of $750 is taken from the business checking Account



Overdraft Transfer Fee of $12 is applied



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 plus the $12 Overdraft Protection Transfer Fee. No insufficient or unavailable overdraft fees were charged. Hence, only the $12 transfer fee was charged instead of $70 in Overdraft fees had there been no Overdraft Protection.


1Refer to the Business Deposit Fee Schedule for which accounts apply fees and their dollar amounts. Any overdrafts that we pay must be promptly repaid by you. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

2Withdrawals and transfers out of your Savings and Money Market Savings accounts are limited by federal law. You can withdraw or transfer funds from a savings or money market savings account a total of six (6) times per Service Fee Period (such as by automatic or pre-authorized transfers using telephone, Online Banking, Mobile Banking, Overdraft Protection, Payments to third parties, Wire Transfers, Checks, and Drafts). Fees apply if you exceed these limits and, if you repeatedly exceed these limits, we will convert your account to a checking account, which may be a non-interest bearing checking account. If we elect to close or convert your Account we will notify you via letter.

3Applications for a Santander Small Business Overdraft Protection Line of Credit Account are subject to credit approval.