First Hawaiian Bank

Overdrafts Frequently Asked Questions

How does FHB handle overdrafts?

We have standard overdraft services that come with our checking accounts. We also offer overdraft protection plans, such as a link to a savings account or Yes-Check, which is a line of credit that you can apply for to help cover overdrafts.

How do FHB’s standard overdraft services work?

At the Bank’s discretion, we may authorize and pay overdrafts on certain types of transactions including checks, automatic bill payments, recurring debit card transactions and other types of overdrafts using your checking account number. A special handling fee generally applies whether the overdraft item is paid or returned.

How does FHB handle everyday debit card and ATM overdrafts?

Our standard overdraft practices include a discretionary service called DebitPlus. If you want us to authorize and pay overdrafts on your everyday debit card and ATM transactions, you need to opt in or sign up for DebitPlus.

What if I don’t want FHB to pay my checks or bill payments into overdraft?

You can contact the Bank if you want to opt out of overdraft services for checks and automatic bill payments. If you do opt out and if such items come in against insufficient funds, they will be returned unpaid (“bounced”) and you will generally be assessed an insufficient funds (NSF) fee.

What is the benefit to me to having my transaction paid rather than bounced?

If the bank pays your overdraft, this may help you avoid embarrassment, fees, finance charges, late charges and other consequences by the payee (e.g., merchant, landlord, creditor, etc.).

When do I need to repay my overdrafts?

You must repay the overdraft promptly.  If you do not clear your overdraft within seven calendar days a continuing overdraft fee will be assessed.

What’s the difference between FHB’s standard overdraft services and overdraft protection?

Our standard overdraft services are discretionary, which means we don’t guarantee that we’ll always authorize and pay any transaction that overdraws your account. Our standard overdraft services generally come with your account (there is no application or approval process).  However, for the DebitPlus feature, you need to opt in to authorize us to authorize and pay overdrafts for your everyday debit card or ATM transactions.

Overdraft Protection automatically transfers available funds from a linked savings account or a Yes-Check line of credit to cover overdrafts on your checking account. You must apply and be approved for Yes-Check or link an eligible personal savings account in order to have this overdraft protection on your checking account.

How can I avoid overdrafts on my account?

The best way to avoid overdrafts is to closely monitor your balances and all the transactions you make (including scheduled transactions such as automatic bill payments) and ensure that you never exceed the Available Balance in your account. A good idea is to always keep a “cushion” amount in your balance, just in case you fail to track a payment. We also offer several tools to help you keep track of your balances or cleared transactions, or to alert you via email if your balances dip below a threshold you determine.

How is my Available Balance determined?

Your Current Balance is your balance at the start of the day, plus or minus the transactions for that day. Your Available Balance is your Current Balance minus holds on your funds. Holds include deposits with a hold on the amount and debit card holds for pending purchases or payments using your debit card. Please note that for certain types of debit card transactions, some merchants obtain authorizations for a partial amount (such as gas stations) while others may be for a greater amount (such as restaurants) of the purchase. Therefore, the hold amounts may not always equal the transaction amount.

You can spend up to the amount of your Available Balance after accounting for pending or outstanding transactions without incurring an overdraft or insufficient funds transaction.

What is an overdraft?

An overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than your Available Balance.

What is the difference between an overdraft fee (OD) and an insufficient funds fee (NSF)?

An OD fee is assessed when the bank pays (or honors) an overdraft item. An NSF fee is assessed when the bank returns (or bounces) an item unpaid due to insufficient funds. Your statement will list these fees as “SP HDLG CHGS TODAY-PAY” (overdraft fee for an item paid) or “SP HDLG CHGS-RET” (insufficient funds fee for an item returned).

What are your overdraft fees?

Our standard overdraft fee for everyday debit card and ATM transactions is $26.50 under DebitPlus.

Our standard overdraft fee and insufficient funds fee for other types of transactions (checks, ACH, bill payments, etc.) is $29.50.

Excessive Overdrafts: If you have six or more overdrafts within a one year period we charge up to $2.50 more for each overdraft or returned item on your account, or a maximum fee of $29.00 or $32.00 depending on the type of transaction.

Continuing OD Notification: If the end of day account balance is overdrawn for seven consecutive days, we will mail you a notification of this condition and charge you a one-time fee of $10.00

Small Overdraft Waiver: Any transactions that create an end of day Available Balance that is overdrawn by $5.00 or less will not be assessed an OD or NSF fee.

Daily Fee Limit: An account will not be charged more than five OD or NSF fees on any one day even if the number of overdraft or insufficient funds items exceeds five on that day. This limit does not apply to the $10.00 Continuing OD Notification fee.

How does FHB process transactions?

The order in which we process transactions can affect the total amount of fees charged when an account is overdrawn. Transactions are processed and posted together at the end of each business day. We post all credits (such as deposits) before debits (payments from the account). For debits, guaranteed items (e.g., wire transfers, cashed checks, ATM withdrawals or everyday debit card transactions) are posted before those that are not (e.g., checks or ACH transactions). Within each group of transactions, we generally process from the lowest to highest dollar amount. In the case of checks or other items with a serial number, we process by check or serial number from low to high.

Note: Holds may be placed on your account (e.g., for deposits or debit card transactions) that will reduce your Available Balance and may cause your account to become overdrawn.

What is Savings Overdraft Transfer Service?

Consumers that have a personal checking and a personal Regular Savings or Priority Savings, may link their checking to a savings account for the purpose of automatic overdraft protection. Like Yes-Check, if an overdraft occurs, it will trigger an automatic transfer from the linked savings to cover the overdraft.

How do customers sign up for this service?

You may visit us at any branch or in writing by mail or secured email via FHB Online.

Which savings accounts are eligible for this service?

Personal Regular Savings accounts and Priority Savings are eligible. YesSavings, Christmas Club and IRA Savings accounts are not eligible. Custodial savings accounts (HUTMA, UGMA, etc.) are also not eligible.

How do I change my account's Overdraft Service?

You can change your Overdraft Service by calling 1-888-844-4444, mailing a written request or visiting a branch.