Business & Consumer
Overdraft Privilege & Overdraft Protection


Life happens! Mutual Federal understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:



Overdraft Protection Link from Another Deposit Account you have at Mutual Federal¹


$5 Fee per transfer.

Overdraft Privilege


 $29 Overdraft Fee per item. Daily fees may apply.

¹Call us at (937) 498-1195, email us at or come by a branch to sign up or apply for these services.

Overdraft Protection Sweep services apply to all transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account you may have at Mutual Federal.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.


Transactions Covered with 
Overdraft Privilege

 Standard Coverage

(No action required)

Extended Coverage

(Your consent required on consumer accounts) *




ACH ‐ Automatic Debits



Recurring Debit Card Payments



Online Bill Pay Items



Internet Banking Transfers



Telephone Banking



Teller Window Transactions



ATM Withdrawals  


Everyday Debit Card Transactions  


*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Privilege in its entirety by contacting us at (937) 498-1195 or by sending us an e‐mail at

What Else You Should Know

  • A link to another account may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit

  • This describes the posting order for purposes of determining overdrafts. Mutual Federal has chosen to clear transactions by posting priority in the order of transaction code and then control number. Our general policy is to post items throughout the day and to post credits before debits, but there are over 100 types of transaction codes which could be processed on your account. Preauthorized withdrawals, authorized loan and tax payments are paid prior to electronic bill pay or some ATM debits. Checks, fees and service charges are processed after all other debits are processed. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies.  Call us at (937) 498-1195 if you have questions on the posting order of specific items.

  • The $29 Overdraft Fee is the same fee amount that is charged if a check or ACH is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $29. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.

  • For consumer accounts, there is a limit of 5 Overdraft Fees ($145.00) per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $5.00 or less. These exceptions do not apply to business accounts. 

  • If your account balance remains overdrawn for longer than 3 business days, we will charge your account a daily overdraft fee of $6 for each of the consecutive business days the account remains overdrawn, beginning with day 3. 

  • Although under payment system rules, Mutual Federal may be obligated to pay some unauthorized debit card transactions, Mutual Federal will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).

  • Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card.

  • Mutual Federal authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Mutual Federal may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.

  • Mutual Federal will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account.  If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described in this letter, Mutual Federal will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).

  • We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit.

  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice. 

  • Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty (30) days for a minimum of one business day.

  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand. 

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (937) 498-1195 or visit a branch.