First National Bank offers overdraft protection, but it is not automatic and costs money when you use it

First National Bank does allow overdrafts on checking accounts, but only if you sign up for overdraft protection or overdraft services. Without it, transactions that would take your balance below zero are simply declined. If you do enroll, the bank will cover the shortfall—but you pay a fee each time, usually between $25 and $35 per overdraft, depending on your account type and your state.

The key distinction: overdraft protection is a choice you make when you open the account or later through online banking or a branch visit. It is not a feature that comes turned on by default. Many people discover this the hard way when a payment bounces because they never activated it.

First National Bank offers two main routes to overdraft coverage: linking a savings account or money market account to your checking account (so funds transfer automatically when needed), or enrolling in their overdraft service (which lets the bank cover the shortage and charge you a fee). The linked account method is usually cheaper if you have the money sitting there; the overdraft service costs more but does not require a second account.

Key Takeaways

  • Overdraft protection at First National Bank is optional and must be turned on—it does not happen automatically when you open an account.
  • Linking a savings account to your checking account lets the bank transfer funds automatically when you overdraft, usually with no fee if the transfer succeeds.
  • Overdraft service (the bank covering the shortage) costs $25 to $35 per overdraft, and fees stack if multiple transactions overdraft on the same day.
  • Without overdraft protection enabled, transactions that exceed your balance are declined, and you avoid fees but may face merchant rejection or late payments.
  • You can turn overdraft protection on or off anytime through First National Bank's online banking portal or by visiting a branch.

How linked account overdraft protection works

If you have a savings account or money market account at First National Bank, you can link it to your checking account to cover overdrafts automatically. When a transaction would take your checking balance negative, the bank transfers money from the linked account to cover it. This transfer usually happens instantly or within the same business day.

The main advantage is cost: if the transfer succeeds, there is typically no fee. You only pay if the linked account does not have enough money to cover the overdraft—in that case, the bank may charge an overdraft fee on top of the failed transfer. This makes it the cheaper option if you keep a buffer in savings.

The main disadvantage is that you need a second account and money sitting in it. If you are living paycheck to paycheck, a linked savings account does not help because there is nothing to transfer. You also need to remember to replenish the savings account after each transfer, or the next overdraft will fail.

How overdraft service fees work

Overdraft service is First National Bank's way of lending you money instantly when you overdraft. Instead of declining the transaction, the bank covers the shortage and charges you a fee—typically $25 to $35 per overdraft, though the exact amount depends on your account type and state regulations.

The fee is charged per overdraft event, not per dollar overdrawn. If you overdraft by $5 or $500, the fee is the same. However, if multiple transactions overdraft on the same day, you may be charged multiple fees—one for each transaction. Some banks cap daily overdraft fees (for example, charging no more than three fees per day), but you should confirm First National Bank's policy for your specific account.

Overdraft fees compound quickly. A single $30 overdraft fee on a $100 shortage is a 30% cost. If you overdraft twice a month, you are paying $60 to $70 in fees alone. Over a year, that adds up to $720 or more—money that could go toward fixing the underlying cash flow problem.

When transactions are declined instead of overdrafted

If you do not have overdraft protection turned on, First National Bank will decline any transaction that would take your balance below zero. This includes debit card purchases, ATM withdrawals, checks, and ACH transfers. The transaction simply fails, and you are not charged a fee—but you also do not get the money.

Declined transactions can create their own problems. A declined debit card at a store is embarrassing. A declined check can damage your reputation with a landlord or creditor. A declined automatic bill payment can result in a late fee from the biller, which is often larger than an overdraft fee would have been. In some cases, a declined payment can also hurt your credit if the bill is reported as late.

For this reason, many people choose overdraft protection even though it costs money—because the alternative (a declined payment) can cost more or cause worse consequences. The decision depends on what you are trying to protect against and how often you expect to overdraft.

How to turn overdraft protection on or off

You can manage overdraft protection through First National Bank's online banking platform. Log in, navigate to your checking account settings, and look for overdraft or overdraft protection options. You should see choices for linked account transfers, overdraft service, or both. Select the option you want and confirm.

If you prefer not to use online banking, visit a First National Bank branch in person. A representative can walk you through the options, explain the fees, and set up whichever protection method you choose. This is also a good time to ask about your bank's specific overdraft fee amount and daily cap, since these vary by account type and location.

You can change your overdraft settings anytime. If you turn it off and later change your mind, you can turn it back on. There is no penalty for switching, though any fees you have already been charged will not be refunded.

What happens if you overdraft without protection

If you overdraft and do not have overdraft protection, the transaction is declined and you owe nothing to the bank. However, you may owe money to whoever you were trying to pay. For example, if you write a check that bounces, the recipient may charge you a returned check fee (typically $25 to $50), and the merchant or creditor may report the bounced check to ChexSystems, a banking history database that can make it harder to open accounts elsewhere.

If you overdraft repeatedly without protection, First National Bank may close your account. Banks track overdraft attempts and excessive declines as signs of financial instability or fraud risk. A closed account goes on your banking record and can make it harder to open a new account at another bank for several years.

Overdraft protection versus overdraft fees: which costs less

The math depends on your situation. If you have a linked savings account with money in it, linked account transfers cost nothing (or very little), so that is the cheapest option. If you do not have savings, overdraft service costs $25 to $35 per overdraft, which is expensive but still cheaper than the cascade of fees that can follow a declined payment (returned check fee, late fee from the biller, possible credit damage).

The real solution is neither overdraft protection nor overdraft fees—it is fixing the cash flow problem that causes overdrafts in the first place. Overdraft protection is a safety net, not a budget. If you are overdrafting regularly, you are spending more than you earn, and no fee structure will fix that. The money you spend on overdraft fees is money you could put toward an emergency fund or a spending plan.

Frequently Asked Questions

Can I overdraft my First National Bank account without signing up for overdraft protection?

No. Without overdraft protection, transactions that would take your balance negative are declined. The bank will not cover the shortage or charge you a fee—the transaction simply fails. You must actively enroll in overdraft protection to allow overdrafts.

What is the overdraft fee at First National Bank?

Overdraft fees typically range from $25 to $35 per overdraft, depending on your account type and state. The fee is charged per transaction, so multiple overdrafts on the same day can result in multiple fees. Contact your local branch or check your account agreement for the exact fee for your account.

Can I link a savings account from another bank to cover overdrafts?

No. First National Bank can only link accounts within First National Bank itself. If you want to use linked account overdraft protection, you need a savings or money market account at the same bank. If you do not have one, overdraft service is your only option.

Will overdraft protection hurt my credit score?

Overdraft protection itself does not appear on your credit report. However, if an overdraft results in a declined payment to a creditor and that payment is reported as late, it can hurt your credit. Overdraft fees also do not directly affect credit, but they can drain your account and make future overdrafts more likely.

How long does it take to turn off overdraft protection?

You can turn off overdraft protection immediately through online banking or at a branch. The change usually takes effect within one business day. Once it is off, new transactions will be declined if they would overdraft your account, though pending transactions may still process and overdraft.