Generally, there are 2 types of overdraft services:
- Standard overdraft services
- Overdraft protection plans
- You choose to "opt in" which grants your financial institution permission to apply standard overdraft services to debit and ATM card transactions before you can be charged overdraft fees.
- If you have an existing account and you don't "opt in", then beginning August 15th, any previous overdraft fees won't apply. Transactions will simply be declined instead of charging overdraft fees.
- If you open a new account after July 1st, you will not be charged overdraft fees by your financial institution unless you "opt in".
- The new overdraft rules give you more flexibility. You can add and remove overdraft services at any time.
- The new rules do not cover checks or automatic bill payments. Your bank will automatically enroll you in their standard overdraft services for transactions like these.