Overdraft occurs when withdrawals from a bank or credit union account are greater than the available balance in the account. This gives the account a negative balance. Another term for this is NSF, or non-sufficient funds, meaning that there are not enough funds in the account to cover the withdrawals.
When a check is deposited into an account, the money that check represents is typically not available immediately. The financial institution places a hold on the check until the money is actually transferred from the account the check was written against into the depositor’s account. The amount of time allowed for the hold depends upon the type of check being deposited, where the check originated, and the amount of the check. If you are unsure when making a deposit, ask a Branch Representative when the money will be available to you.
Routing Transit Number
A routing transit number (RTN) or ABA number is a nine digit code appearing on the bottom of checks. This number identifies which financial institution the check is drawn upon. The code is also used by the Automated Clearning House to process direct deposits and other automated transfers. This system is named the American Bankers Association, which designed it in 1910.