Overdrafts and

Overdraft Protection.

Personal Accounts

At People’s United Bank we offer tools to help you avoid overdrafts and overdraft fees. We also offer solutions to provide you with the protection and coverage you need if an overdraft does occur. This guide will help you decide which services and plans are right for you, as well as describe important terms for understanding the balance information we provide to you.

An Overdraft takes place on an account when an item is presented for payment on an account and there are insufficient funds or insufficient available funds to pay the item in full. To understand the difference between insufficient funds and insufficient available funds and how these terms impact your account, it is important to understand some basic terms we use to describe your account balance. When you make a transaction at a branch, over the telephone, online or at an ATM, you can check your Available Balance and your Current Balance. We explain the difference between these two balance amounts and what they mean for you in the tabs above.

What are the bank's standard business practices when determining what overdrafts to pay?

Our standard business practice of processing overdrafts includes paying an item or items presented against your account even when you have insufficient funds to cover them. This practice begins immediately upon opening a new checking account. The decision to pay items is based on a number of factors, including the length of time you have had a checking account with People’s United, the amount of money you keep on deposit with us and other factors. Generally we choose to authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions, such as checks that have been converted to an electronic transaction by the payee
  • Automatic recurring bill payments, including ACH withdrawals
  • With your permission (or opt-in) we may also pay ATM and one-time debit card transactions

We pay overdrafts at our sole discretion which means we do not guarantee that we will always pay any type of transaction. If we do not authorize and pay an overdraft, the transaction will be declined.

The cost of an overdraft

We charge an Overdraft Item Fee or Uncollected "UAF" Item Fee of $37 for each overdraft item presented for payment, whether it is paid or returned.* Here are some of the ways that we help to reduce the overall cost of overdrafts:

  • We limit the total Overdraft and Uncollected "UAF" Item Fees we charge to your account (whether paid or returned) to a maximum of 5 per day
  • We will not charge you either an Overdraft or Uncollected "UAF" Item Fee if, after all items have been posted at the end of day, your account is overdrawn by less than $5. If, at the end of day, your account is overdrawn by $5 or more, we will charge you an Overdraft or Uncollected "UAF" Item Fee for each transaction that overdraws your account
  • We offer overdraft protection services that may provide you with overdraft coverage at a lower cost

You have a choice

You can choose how you would like People’s United Bank to handle your ATM and one-time debit card transactions. You can "opt-in" and tell us that you would like us to consider authorizing your ATM and debit card transactions even when you do not have enough money in your checking account. Otherwise, People’s United Bank will not authorize and pay overdrafts on your ATM and one-time debit card transactions. Remember, even if you "opt-in" the bank maintains sole discretion as to whether to authorize or deny these items if you do not have available funds to cover them.

How to Opt-In

There is no cost for making a selection to opt-in and you may change your selection at any time.

How does the order in which we post items affect overdrafts?

In determining the posting order, we have chosen to divide checks and other items presented to your account into different categories. The categories are based on the type of transaction. If multiple items are received by us for payment on the same Business Day, we sort the items by category before posting them to your account at the end of the Business Day. You agree that we may determine in our discretion the categories, the transactions within a category, the order among categories and the posting order within a category. The posting order is described in the chart below.

The posting order is described in the chart below.

Transaction Posting Order

Fees generally post in the following order: Overdraft Item Fees and Uncollected "UAF" Item Fees for transaction activity from the prior Business Day post first; many activity based fees post next to their corresponding transaction; and other types of fees assessed monthly post last.

The posting order will not affect you if your Current Balance at the end of a Business Day does not fall below zero or if your Available Balance is sufficient to cover all posted items. However, if your Current Balance is below zero or your Available Balance is not sufficient to cover all posted items, posting order determines which items may overdraw your account and may also impact the number of Overdraft Item Fees and Uncollected "UAF" Item Fees you are assessed. To avoid Overdraft Item Fees or Uncollected "UAF" Item Fees, it is important that you have enough money in your account to cover your account activity and that you wait for your deposits, transfers or credits to be made available for your use or withdrawal before drawing against those funds.

The posting order is illustrated in the example below.

Example of Posting Orders applied

People's United Bank Overdraft Protection Services

We also offer Overdraft Protection Services, such as a Personal Credit Line1 which may be less expensive and beneficial to you in the event an overdraft occurs. If approved, a credit line can help protect you against overdrafts. The credit line automatically advances funds to your checking account to cover checks or other items you have authorized, up to the amount of the credit line approved. Only the exact amount needed will be advanced to your checking account to cover the potential overdraft. The Personal Credit Line is a loan and you will be charged interest based on the amount of the line advanced to your checking account.

You can also set up an Overdraft Protection Sweep.2 This service links your checking account to a People’s United savings account that you own and will automatically transfer money to your checking account at the end of each Business Day to cover your total overdraft amount for a low fee of $10.00 per transfer.

If you would like us to consider authorizing your ATM or one-time debit card transactions into overdraft you must also opt-in to that service. To learn more about our overdraft protection plans visit your local branch or call us at 1-800-772-1090.

Tools and Tips to help you avoid fees

Review your account statement

In addition to regularly balancing your checkbook, you should carefully review your statement as a way to avoid overdrafts. We provide a useful balancing tool on the reverse side of your printed statement for your convenience.

Obtain an ATM mini-statement

You can review your account activity by requesting an ATM mini-statement when using any People’s United Bank ATM.

Use People's United Online or Mobile Banking

Online Banking and Mobile Banking can help you stay up-to-date on your account activity and Available Balance, and guard against future overdrafts. You can review your account activity online at peoples.com and use our online balancing tool. You can also set up e-mail alerts for when your account goes below a certain level or if you make certain transactions, like an ATM withdrawal.

Use Telephone Banking

Call 1-800-894-0300 to access your account information by phone or to speak to a banking representative about your account.

What is a Business Day and how does it affect when funds deposited are available?

A "Business Day" means every day except Saturday, Sunday and Federal holidays. If you make a deposit on a Business Day that we are open, we will consider that day to be the day we receive your deposit, if you make the deposit:

  • in person to one of our employees
  • before 7:00 p.m. ET for the total of your deposits or any transfers at one of our ATMs
  • before 7:00 p.m. ET for telephone or Online Transfers
  • before 7:00 a.m. ET for deposits made at a night depository
  • before 7:00 p.m. ET for mobile deposits that are received and accepted by us before this time

If you make a deposit or transfer after the cut-off time, or on a day we are not open, we will consider that it was received on the next Business Day we are open.
Cash deposited in person at one of our branches is available the same Business Day.

Electronic direct deposits, wire transfers, preauthorized credits and cash deposited at a People’s United ATM that does not require an envelope are available the same Business Day.

Funds from all other deposits (depending on the item) are generally available on the next Business Day, after the day of your deposit. Longer delays may apply.

This represents our general policy. For specific details, please see the Funds Availability Policy in the Consumer Deposit Account Agreement.

What is the difference between my Available Balance and my Current Balance?

Your Available Balance is our most recent record of the amount of money available for your use or withdrawal. Your Available Balance includes pending transactions such as withdrawals we have authorized for your debit card purchases or ATM withdrawals, transactions known to us, such as checks or preauthorized ACH withdrawals that we have received for payment from your account but have not yet paid or other pending transactions which will not be posted until a future Business Day.

After the close of each Business Day we process your transactions that we have received. We refer to this transaction processing as posting. If during the nightly transaction posting process, an item posts to your account and you do not have a sufficient Available Balance to pay the item, meaning you have money in your account but not all of the money on deposit is available for withdrawal, this will result in an overdraft. Whether we pay the item or return the item unpaid this will result in an Uncollected "UAF" Item Fee. If the item is not paid, the fee is called a Returned Uncollected "UAF" Item Fee, and if the item is paid, the fee is called a Paid Uncollected "UAF" Item Fee.

Your Current Balance is your actual balance during each calendar day, meaning the amount of money that is in your account at any given time whether or not the money is available for withdrawal or use by you. This balance figure includes debit card transactions that have posted to your account as well as the full amount of all deposits you have made even though some portion of a deposit may be on hold and not available to you. During the nightly transaction posting process, if an item posts to your account and the item amount is greater than your Current Balance causing your Current Balance to fall below zero, an overdraft occurs. Whether we pay the item into overdraft or whether we return the item unpaid, this will result in an Overdraft Item Fee. If the item is not paid, the Overdraft Item Fee is called a Returned Overdraft Item Fee, and if the item is paid, the Overdraft Item Fee is called a Paid Overdraft Item Fee.

Neither your Current Balance nor your Available Balance includes funds from a Personal Credit Line1, Overdraft Protection Sweep2 or overdraft protection program.