Overdraft Protection: Peace of Mind
Avoid the fees, hassle and embarrassment of rejected transactions or overdrafts in your checking account with one of our overdraft protection options. We currently offer three options: a Personal Savings Overdraft Service, a Personal Overdraft Line of Credit or a Personal Overdraft Sweep Line of Credit.
Our Personal Savings Overdraft Service links your personal savings or money market account at City National to your checking account as a safety net to avoid an occasional potential overdraft. Funds are automatically moved to your checking account to cover payment of an item when an overdraft would otherwise occur if we paid the item.
Our lending overdraft services go a step beyond what is typically available to individuals. We offer two options that work together to meet your overdraft protection needs: our Personal Overdraft Line of Credit and our Personal Overdraft Sweep Line of Credit.
Your City National lending overdraft protection is linked to your City National checking account. Each of our lending overdraft options acts like an insurance policy against overdrafts by automatically advancing funds to cover checking account overdrafts up to your available credit.
The best means to avoid overdrafts is to keep sufficient funds in your checking account to cover all transactions. City National Bank does not encourage you to present transactions for payment against insufficient or uncollected funds in your account. Our Overdraft Protection Options are offered to you as a means to allow us to pay the transactions up to the limits of the protection and avoid overdrafts. Without Overdraft Protection, at our discretion, we may pay transactions that overdraw your checking account but we are not obligated to do so. We reserve the right to close any account when checks or other items are repeatedly drawn against insufficient or uncollected funds or credit. Overdrafts in account must be repaid at once.
How Our Overdraft Protection Options Work
|Features||Personal Savings Overdraft Service||Personal Overdraft Line of Credit||Personal Overdraft Sweep Line of Credit|
|Who would benefit?||Individuals who need a low cost safety net to avoid unexpected occasional overdrafts.||Individuals with more frequent overdrafts who want the control of set transfer amounts to avoid potential overdrafts and the ability to repay on their schedule.||Individuals who want automatic coverage to avoid potential overdrafts and automatic repayment of the credit line advance.|
|% of available credit eligible to provide overdraft protection||Not applicable||100%||100%|
|Advance increments||The exact amount of the potential overdraft, plus the transfer fee, is automatically transferred from the savings account to the checking account. See notes below.||$100 increments. The amount of the potential overdraft rounded up to the next $100 advances from the credit line to the checking account.||The exact amount of the potential overdraft sweeps from the credit line to the checking account. Deposits made to the checking account sweep back to the credit line to reduce the outstanding balance.|
|Minimum Potential Overdraft Coverage Amount||Savings balance||$25,000||$25,000|
|Maximum Potential Overdraft Coverage Amount||Not applicable||$1,000||$1,000|
|Repayment||None, as your own savings account funds are used to cover the potential overdraft.||Monthly payments equal to 5% of the principal balance plus any assessed fees (but not less than $25) plus any past due amounts.||Monthly payments equal to 10% of the principal balance plus any assessed fees (but not less than $10) Plus any past due amounts.|
|Automatic payment feature||Not applicable||Automatic payment for the minimum amount due monthly is required.||Automatic payment for the minimum amount due monthly is required.|
|Interest rate||Not applicable||18.00% Annual Percentage Rate||18.00% Annual Percentage Rate|
|NSF/OD fees||Assessed only when items paid or rejected exceed the balance available in both your checking and savings accounts.||Assessed only when items paid or rejected exceed the balance available in both your checking account and the overdraft line of credit.||Assessed only when items paid or rejected exceed the balance available in both your checking account and the overdraft sweep line of credit.|
|Continuous overdraft fees||May apply if your checking account is overdrawn and remains overdrawn for more than four (4) calendar days.||May apply if your checking account is overdrawn and remains overdrawn for more than four (4) calendar days.||May apply if your checking account is overdrawn to pay items and remains overdrawn for more than four (4) calendar days.|
|Notes||Transfers from savings are counted toward the 6 allowable transactions per monthly statement period. There is a $15 charge for each excess transaction. A savings account may be closed for excess transactions (Regulation D).||Requires loan application and credit approval.||Requires loan application and credit approval.|
*There is no annual fee for accounts domiciled in our New York offices.