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Overdraft Programs and Services at The Merrimack

At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be costly and inconvenient.

At Merrimack County Savings Bank, we encourage you to manage your finances responsibly. However, we have several options that can save you from additional merchant fees and possible damage to your credit history that may result if a check is returned.

Transfer Account Protection

We will withdraw funds from another Merrimack checking or savings account to cover an overdraft on a checking account.

The basics of the program are:

  • Available funds are transferred in $5 increments once each day to cover all overdrafts on the checking account for that day.
  • $10 Transfer Fee per daily transfer charged to the linked checking account.
  • No annual fee or finance charge.
  • Apply with a Merrimack Branch Services Representative.

CheckReserve Overdraft Line of Credit

The CheckReserve Overdraft Line of Credit allows qualifying customers access to a pre-approved line of credit in $100 increments that are automatically transferred into their checking account.

The basics of the program are:

  • The Merrimack will automatically transfer funds in $100 increments up to your approved amount to cover an overdraft in a personal checking account.
  • Approved lines may be as small as $500 or as large as $5000 depending on customer preference and qualification.
  • Customers can opt to pay back the line through automatic monthly deductions from their checking account.
  • No prepayment penalty.
  • An annual fee of $30.
  • Interest is charged for any credit used. See the CheckReserve Overdraft Line of Credit application for current rates.
  • This is not an automatic service, so interested customers must apply with a Merrimack Branch Services Representative. Subject to underwriting approval.

Courtesy Pay

Courtesy Pay provides a safety net up to a pre-determined overdraft limit under certain conditions. This service is automatic for checks and other transactions made using your checking account for automatic bill payment and recurring debit card payments.

Also, at your request, we may authorize and pay overdrafts created by everyday debit or ATM transactions.

You may also opt out of Courtesy Pay altogether.

It is important to note that with this service, an overdraft fee may be imposed for each overdraft that results in a negative balance. An overdraft (OD) fee or insufficient funds (NSF) fee of up to $32.50 may be charged for covering overdrafts that result in a negative balance at the end of the day. Overdrafts may be created by check, ACH, online banking transactions, phone transactions or other electronic means.

Recurring debit card transactions (payments that are set up to bill and pay automatically) such as automatic draft from your health club or insurance company, may continue to be covered by your overdraft service. Once an overdraft has occurred you are required to bring your account to a positive balance within 30 days. We reserve the right not to pay if your account is not in good standing.

Here’s how they all work together:

  • If a transaction that would result in an overdraft occurs in a customer’s account, the Merrimack will first attempt to cover the overdraft with Transfer Account Protection (TAP).
  • If the customer is not signed up for TAP or there is not enough money in the TAP account to cover the overdraft, we will check for CheckReserve Overdraft Line of Credit.
  • If the customer has CheckReserve, the Merrimack will then automatically advance funds from the line of credit (in $100 increments) into the linked checking account to cover the shortfall.
  • If there is no TAP or CheckReserve on the account, we will determine if the customer has Courtesy Pay on the account. If this service is activated to cover the overdraft, a charge of up to $32.50 will be assessed, up to a maximum of 6 per account per day.

Other tools and resources:

Of course, the best way to prevent multiple and recurring overdrafts is to practice good account management. For assistance in this area, you may:

  • Enroll in the free, comprehensive FDIC Money Smart program designed to help you enhance your banking skills. Visit or call us to get started.
  • Enroll in one of our electronic banking services to help monitor your accounts. Many of these tools allow you to set up alerts that notify you when your balance is getting low
  • Online Banking
  • Mobile Banking
  • Phone Banking