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Checking Account Advance Frequently Asked Questions (FAQs)

Get answers to common questions about our checking account advance product. For additional information or help, please:

Checking Account Advance is a line of credit that allows eligible customers to borrow money from their next direct deposit.1 It's a loan product 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 deposit.

Upcoming Changes

  • On May 31, 2014, Checking Account Advance will be discontinued. Customers may take advances through May 30, 2014, based on current eligibility criteria. After May 30, 2014, no new advances can be requested.

    Customers who have an outstanding balance on May 31, 2014, will receive extended repayment terms. Additional information about these changes is included in the Frequently Asked Questions (FAQs) below and in your checking account statements beginning in March.

    Changes apply to existing customers only. U.S. Bank customers who had no relationship with the bank prior to January 31, 2014, are not eligible for Checking Account Advance.

  • U.S. Bank regularly reviews the products and services we offer to ensure they meet the needs of our customers. While Checking Account Advance is valued by many customers, new federal guidelines impact the availability of this borrowing option. As a result, U.S. Bank and other banks providing similar options will discontinue the products. U.S. Bank is committed to meeting the borrowing needs of all of our customers and we are focusing our efforts on new and innovative ways to meet these needs.
  • You may request advances through May 30, 2014, based on current eligibility criteria. Refer to the "Eligibility" section of the Frequently Asked Questions (FAQs) for details.
  • Payment terms will be extended so customers with an outstanding Checking Account Advance balance on May 31, 2014, will have more time to repay. The changes to repayment are:
    • The maximum payment amount automatically deducted from your checking account will be decreased to 25% of each eligible direct deposit, rather than the current 100%.
    • The due date of an outstanding balance not paid in full by automatic or manual payments will be extended to August 29, 2014, rather than the current 35 days after the advance.

    The extended repayment terms are automatic and there is no additional cost. The following examples show how repayment will work, depending on how frequently direct deposits are received.

    Example:

    A customer has a $440 Checking Account Advance balance on May 31. Each direct deposit the customer receives is $800. The maximum payment automatically deducted from the direct deposit will be $200 (25% of $800). See below how the balance is repaid, based on the frequency of the direct deposit (Weekly, Semi-monthly and Monthly).

    Weekly: A $200 payment the first week in June; a $200 payment the second week; and a $40 payment the third week

    Semi-monthly: A $200 payment in early June; a $200 payment in late June; and a $40 payment in early July

    Monthly: A $200 payment in June; a $200 payment in July; and a $40 payment in August

  • The extended repayment terms are automatically applied to all outstanding Checking Account Advance balances on May 31, 2014. You do not have to do anything and there is no additional cost.
  • Yes. As long as your U.S. Bank relationship was established prior to January 31, 2014, and your checking account meets the current eligibility criteria, you may take advances through May 30, 2014. Refer to the “Eligibility” section of the Frequently Asked Questions (FAQs) for details.
  • Yes. If you meet the eligibility requirements on or before May 30, 2014, you may request an advance. Refer to the “Eligibility” section of the Frequently Asked Questions (FAQs) for details.
  • Yes. The 90-day suspension will still occur after nine consecutive statement cycles of use. The timing of the suspension will determine whether or not a customer can take an advance prior to May 31, the date Checking Account Advance is discontinued for all customers:
    • Suspension begins on or before March 1: Customers who become eligible on or before May 30 may take an advance. Refer to the “Eligibility” section of the Frequently Asked Questions (FAQs) for details.
    • Suspension begins after March 1: Customers who begin suspension after March 1 will not be eligible to take any new advances. Balances will be repaid under the current terms unless there is a balance outstanding on May 31, at which point the extended repayment terms will be applied.
  • Online and Mobile Banking are simple and secure ways to manage your money and monitor the balances of all your U.S. Bank accounts. Sign up for Account Alerts and be notified of low or negative balances, deposits, withdrawals and more. Visit Online and Mobile Banking for details.

    Your mobile carrier may charge access fees depending upon your individual plan. Check with your carrier for specific fees and charges.

  • We offer several short-term credit solutions which are subject to credit approval. To learn more about other credit options available for short-term borrowing, go to Personal Loans & Lines of Credit and Credit Cards.
  • We offer S.T.A.R.T. (Savings Today And Rewards Tomorrow®), a program to help you build savings for unexpected emergencies, with the opportunity to earn rewards along the way. To learn more, go to the S.T.A.R.T. Savings Program.

    Conditions apply. See the S.T.A.R.T. program agreement for details. Deposit products offered by U.S. Bank National Association, Member FDIC.

Product Overview

  • 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 pay off 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".

    Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

Eligibility

  • Checking account advance is a feature of your U.S. Bank Checking account so there is no application process. The associated checking account must meet the direct deposit eligibility classification requirements referenced below. Please note that this service is not available with Electronic Transfer Checking (ETA), Limited Checking and Asset Management Checking. Other exclusions and eligibility criteria apply.
  • 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 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 than 20 overdrafts in the past two (2) statement cycles (no advances until checking has less than 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 withdraws the payment from the checking account which creates an overdraft in the checking account (no advances for 30 days).
    5. Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

    6. Has used a Checking Account Advance in each of the past nine (9) statement cycles (no advances for 90 days).
  • It's simple. To automatically deposit your payroll check, contact your employer and request a direct deposit form. Complete and return the form to your employer for processing. For government or Social Security checks, contact the Social Security Administration at 800-772-1213 or login to http://www.ssa.gov/deposit/ to submit the information online.
  • Beginning January 31, 2014, Checking Account Advance will not be available to new U.S. Bank customers. Customers who open a new personal checking account on or after this date and have no prior relationship with U.S. Bank will not be eligible for Checking Account Advance.
  • Direct deposit is a one-time or recurring electronic deposit of funds that occurs without visiting a branch. Examples of regularly scheduled direct deposits could include payroll deposits, Social Security deposits, interest income, etc. Direct deposits can also be any one-time electronic deposit such as tax returns, funds transfers from another bank, etc.
  • Yes, if you meet all other eligibility criteria. You can have overdraft protection and be eligible for the checking account advance service. Please remember, checking account advance is a high-cost loan product and most forms of overdraft protection are less expensive. Consider using less expensive credit products before taking a checking account advance.

Advance and Payments

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

  • 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.

  • If a Checking Account Advance is taken after 10:30 p.m. CT on a business day, the funds may not be available to cover outstanding checks, electronic transactions (e.g., ACH, online bill pay, etc.) and certain check card transactions (e.g., cell phone bill charged monthly, gas station purchase, etc.) until the next business day. Every day is a business day except Saturdays, Sundays and federal holidays.

    Example: Jessica wrote a check on today's business day and notices the same night that her checking account does not have enough funds to pay the check. She logs into U.S. Bank Online Banking at 11:00 p.m. CT to take a Checking Account Advance and notices a message stating "Transactions made on weekends, holidays or after 10:30 p.m. CT will be processed on the next business day." Since the advance was taken on a business day after the cutoff time of 10:30 p.m. CT, the funds display as available in her checking account with a transaction date of the next business day. However, if her check is presented for payment tonight it may not be covered because the advance was processed on the next business day.

  • 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 pay off each checking account advance by its 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.

    Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

    Example: 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 than 35 days.

    Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

  • 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.

    Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

Costs/Fees

  • 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.

  • U.S. Bank works very hard to be sure customers understand the cost of borrowing. Checking Account Advance is a form of high-cost credit and assesses an advance fee of $2 per $20 advanced.

    Calculating the cost differences between fee-based loans like Checking Account Advance and other credit products that charge interest can be challenging. The chart below attempts to clarify the cost differences between products.

    Please speak with a banker to review which product best fits your needs

  • 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.

    Note: These payment terms apply through May 30, 2014. Any outstanding Checking Account Advance balances on May 31, 2014, will have extended repayment terms. Refer to the “Upcoming Changes” section of the Frequently Asked Questions (FAQs) for details.

Credit Limit Information

  • 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:

    • The credit limit is the lesser of $500 or 50% of the total direct deposits of $100 or more listed on the most recent associated checking account statement, and that total will be rounded up to the next $20.

    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.

Statements

Other Product Options

  • 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 customers do not qualify for a credit product like overdraft protection or a credit card because they have no credit history or 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.

Credit Counseling

If you're having budgeting problems, there are many resources available to help you take control of your finances. Tips for controlling your debt can be found by searching for "credit counseling" at usbank.com. You may consider working with a reputable non-profit credit counseling agency. They can help you restructure and consolidate your debts and work with creditors on your behalf. You can start with a toll-free call to the Consumer Credit Counseling Service at 800-388-2227.

 

  1. "Direct Deposit" means an electronic deposit of funds into your associated checking account, including, reoccurring electronic deposits (such as payroll deposits, Social Security deposits, interest income, etc.) and one-time electronic fund transfers into your associated checking account (such as tax refunds, funds transfers from another bank, etc.), excluding ATM deposits.

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