Checking Account Advance Frequently Asked Questions (FAQs)

Checking account advance is a feature of U.S. Bank Checking accounts that allows eligible customers to borrow money from their next direct deposit¹. This feature has no application process and is in a form of a line of credit that allows customers to take as many advances up to their credit limit. If a customer decides to take an advance, the funds are deposited directly into the customer's checking account.

Payments are made when the next direct deposit¹ of $100 or more is received by the bank. The bank will payoff any balance up to the deposited amount. If an advance is not paid by the 35th day, the bank will withdraw the outstanding balance from the checking account, even if this overdraws the account, to pay the checking account advance. If the account is used in nine (9) consecutive statement cycles, or becomes not in good standing, the bank may limit access of additional advance up to 90 days. Customers must also maintain all eligibility requirements to use the checking account advance feature.

Customers should regularly monitor their accounts, this is the best way to avoid fees and adverse actions.

For customers considering to use the checking account advance feature, please be sure to click on and read "The Guide to Checking Account Advance" and the "Checking Account Advance Agreement".

Customers must have a deposit account open with U.S. Bank for at least six months and the associated checking account must have received at least one direct deposit made to your associated checking account in the amount of $100 or more in each of two consecutive statement cycles, one of which must have been received by us within the past 35 calendar days.

Your eligibility classification is evaluated each statement cycle. We will disclose your eligibility classification on your monthly statement.

Once an account is eligible, it must also be in good standing. Advances from the Checking Account Advance may be restricted if the account:

1. Has a negative balance that exceeds the maximum checking account advance amount
2. Is continuously overdrawn for five (5) consecutive business days (no advances until checking has positive balance).
3. Has more then 20 overdrafts in the past two (2) statement cycles (no advances until checking has less then 20 overdrafts in past two (2) statement cycles)
4. If an advance is not paid in full by the 35th day and U.S. Bank withdrawals the payment from the checking account which creates an overdraft in the checking account (no advances for 30 days).
5. Has used a Checking Account Advance in each of the past nine (9) statement cycles (no advances for 90 days).

If you're eligible, you can take an advance, check your balance and even make a payment through any of these channels:

• Call U.S. Bank 24-Hour Banking at 800-US BANKS (800-872-2657)
• Visit any U.S. Bank branch location
• Login to usbank.com and use U.S. Bank Internet Banking.

Immediately after a successfully advance request, the funds will be transferred directly to your checking account. If your checking account has a negative balance, the advance must be enough to bring your balance positive.

Example: Wade walks up to teller in a U.S. Bank branch because he needs $200. Wade is told that he only has $40 in his checking account and decides to take a checking account advance in the amount of $200. Wade now has $240 in his checking account. Wade can now take a $200 withdrawal from the checking account. He decides to leave $40 in his account just in case.

The checking account advance feature is set up with automatic payments, so payments will be taken when the next direct deposit¹ of at least $100 is received. The payment amount will be the lesser of the full deposit amount or the checking account advance balance plus fees. Any payment to your checking account advance reduces the amount available to you in your checking account for other bills and expenses. There can be situations where the automatic payments may not pay off the outstanding balance so we urge all customers to monitor their account to be sure each advance is paid off prior to the 35th day. If an advance is not paid by the 35th day, the bank will withdraw the outstanding balance from the checking account, even if this overdraws the account, to pay the checking account advance.

Generally speaking, checking accounts in good standing would see that direct deposits are sufficient to payoff each checking account advance by their due date. A few examples of when a checking account may NOT be considered in good standing are if they become overdrawn, continue to be overdrawn, have deposited items returned, or if they discontinue receiving the direct deposit. These are just a few examples of where a customer should consider making a manual payment to their checking account advance to avoid an advance exceeding more than 35 days.

Example 2: Ella has her payroll check automatically deposited into her checking account on the 1st and 15th of the month. Ella had car trouble on the 12th of one month and needed $150 to fix her car. Ella took a $160 checking account advance that day. On the 15th of the month, Ella's payroll check was deposited into her checking account and the bank automatically made the checking account advance payment that same day. The bank withdrew $176 ($160 for the advance and $16 fee) from Ella's checking account and paid off the checking account advance balance. Ella reviewed her checking account the next day to be sure the deposit was made and that the checking account advance was paid off.

Yes. However there's no financial advantage to paying the outstanding balance off early as the fees (or cost of the advance) will remain the same. Making a manual payment is not necessary unless you believe an advance may be outstanding more then 35 days.

No. An overdraft fee will not be assessed on the checking account advance payment transaction, however if other items post to your account, overdraft fees may be assessed on those items. Customers should also know that if this situation does occur, your ability to take another checking account advance will be suspended for a period of 30 days.

The fee is $2 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 deposit¹ 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 fees and then to the unpaid principal balance.

Example 1: Reed advanced $280. The fee 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 fee is $16.

No. There's a flat fee of $2 for every $20 advanced. No additional checking account advance charges are assessed. Please keep in mind that checking account advance has its 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 its 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.

If you have a direct deposit of $100 or more, that 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 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 is 10% of the advance amount or $2 for every $20 advanced.

Example: Tom gets a direct deposit of $1,000 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 gets 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 gets 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.

Your credit limit for the next statement cycle is determined by the amount of your direct deposits from the previous statement cycle and is calculated as follows:

Example: James is paid automatically twice a month for a total of $800 ($500 is paid to James on the 1st of the month and $300 is paid on the 15th of the month). James' limit would be $400 or half the amount of his total direct deposits.

Once a customer selects a checking account advance transaction at any of our banking channels (phone, branch or U.S. Bank Internet Banking), the limit is displayed before the customer enters their advance request amount. Customers can also call 800-US BANKS (800-872-2657) and ask a customer service representative for the amount of their limit.

If you're eligible, you may advance up to your credit limit less any previous unpaid advances. Advances must be taken in $20 increments.

Example: Bob has a credit limit of $400 and has recently advanced $100 which has not yet been paid. Bob could advance up to $300 ($400 - $100 = $300). Once Bob gets his next direct deposit and his balance is paid off, he could again advance up to $400.

There's a $20 minimum advance. However, if your checking account is overdrawn, your minimum advance must bring your account to at least a $0 balance.

Yes. The limit is based on the total of the direct deposits of $100 or more so if the direct deposit amounts change, so can your checking account advance limit change.

Yes. You can take as many advances as you like up to your available credit limit. Please remember: checking account advance is designed for short-term credit needs. If you decide to borrow, borrow only as much as you can afford to pay back with your next direct deposit.

Yes. All advances and their payment due dates, fees incurred, outstanding balances, payments and credits will appear on your associated checking account monthly statement.

You may contact a banker at your local U.S. Bank branch office or call U.S. Bank 24-Hour Banking at 800-US BANKS (800-872-2657).

Overdraft protection is set up to automatically transfer sufficient funds into the checking account if the checking account would have a negative balance at the end of the day. Overdraft protection often requires an application and credit check; however, this may be a lower cost option to cover unexpected overdrafts if you qualify.

Checking account advance does NOT automatically transfer funds if the checking account would become overdrawn. Customers must monitor their checking account, and if they believe they may become overdrawn, they must initiate every advance and know how much to advance from the checking account advance service. This service does not require an application or credit check, but before making any decisions to use this service, be sure to view the "Guide to Checking Account Advance" and the "Checking Account Advance Agreement" for a complete understanding of this service along with your rights and responsibilities.

There are many situations where a customer needs access to cash for an emergency situation and the customer does not have overdraft protection, the bank is closed. There are also situations where a customer does not qualify for a credit product like overdraft protection or a credit card because they have no credit history or has a bad credit history. checking account advance provides quick access to funds for consumer checking customers in 'emergency' situations.

Example: Let's say your car breaks down on a Saturday and you need $250 to fix the car. The bank may be closed or you've had trouble qualifying for a loan in the past because you have "no credit" or "bad credit" history. By requesting a checking account advance, you can advance funds immediately to fix your car.