COSTS / FEES
Please refer to the Product Overview section of the "Checking Account Advance Agreement" or see "Your Deposit Account Agreement" page 45 for more information.

What is the cost of this service?
The Finance Charge is $2.00 for each $20 that you advance. For example, if you advance $100, the fee would be $10. The $10 fee would be collected when the next direct deposit of $100 or more is received by the bank and payment is made All Checking Account Advance payments will be applied first to any unpaid finance charges and then to the unpaid principal balance.

Example: Reed advanced $280. The Finance Charge is $28. When Reed receives his next direct deposit of $100 or more, the bank will withdraw $308 ($280 + $28 = $308) from his checking account to payoff the advance and fee.

Example 2: Harry advanced $40 on Monday, $20 on Tuesday, and $100 on Friday for a total of $160 Checking Account Advance balance. When Harry receives his next direct deposit of $100 or more, the bank will withdraw $176 ($40 + $20 + $100 + $16 in fees = $176) from his checking account to payoff the advances and fees. The Finance Charge is $16.

Do I pay interest or any "hidden" fees?
No. There is a flat fee of $2 for every $20 advanced. No additional Checking Account Advance charges are assessed. Please keep in mind, Checking Account Advance has it's own flat fee structure of $2 for every $20 advanced and is not directly related to the customer's checking account fees. Each checking account has it's own fees that are unrelated to a Checking Account Advance. Examples of checking account fees may include monthly maintenance fees, minimum balance fees, overdraft fees, etc.

Why is an Annual Percentage Rate (APR) quoted when there isn't an interest rate on the Checking Account Advance?
The Checking Account Advance is a form of open-ended credit. Federal law requires that the Finance Charge must be reflected as the Annual Percentage Rate (APR) for comparison to alternative forms of credit.

How is the Annual Percentage Rate (APR) calculated?
To compute the Annual Percentage Rate (cost of funds borrowed over one year), the finance charge is stated as a percent of the Advance amount and multiplied by the number of statement cycles within a year. For example, $100 Advance with a $10 fee = $10/$100 = 10% X 12 Cycles = 120% APR.

What if funds are needed beyond the next direct deposit?
If you have a direct deposit of $100 or more, that direct deposit will first pay any outstanding Checking Account Advance balance, including fees. In some circumstances, you may need funds advanced for a longer period of time than your next scheduled direct deposit. In this case, you might need to make another advance, which would impose another fee. Remember, the cost of each Checking Account Advance advance is 10% of the advance amount, or $1 for ever $10 advanced.

Example:   Tom receives a direct deposit of $1000 on the 1st and 15th of every month. On March 2, Tom has a flat tire and needs a new tire that costs $100. With Tom's current expenses, he could save money to gradually pay for the new tire by April, but he needs to buy the tire today. Tom advances $100 from his Checking Account Advance line of credit to pay for the new tire. On March 15, Tom receives his direct deposit, which pays the $110 outstanding balance ($100 advance and $10 fee) in full. Tom has to pay other bills and expenses, so he takes another $100 advance on March 16. On April 1, Tom receives his next direct deposit, which pays the $110 outstanding balance ($100 advance and $10 fee) in full. Because Tom made two advances to help pay for his expenses, he advanced $200 during March and was charged $20 in fees for the advances.

BACK TO ALL FAQ TOPICS
The Checking Account Advance Guide
The Checking Account Advance Agreement