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Understanding Overdrafts

Learn about overdrafts and services to help you manage your accounts.

Shawn Kelly Rostron from Bank of Hawaii speaks about how to avoid over drafting your account.

Learn more about these services that help you manage your accounts:

An overdraft occurs when debits from a bank account exceed the available balance in that account. Debits include checks, automatic payments, in-person withdrawals, debit card purchases, transfers from the account, ATM or ACH transactions, or other withdrawals.

How does Bank of Hawaii handle overdrafts?
At Bank of Hawaii, overdrafts can be handled in two different ways:

  • We have standard overdrafts practices that come with Bank of Hawaii accounts.
  • We also offer overdraft protection plans, such as Overdraft Protection from Savings, which may be less expensive than our standard overdraft practices and for consumer accounts, Bankoh CoverCheck, a line of credit to help cover overdrafts. More options are listed in the section Service to help manage your accounts. Certain restrictions may apply.

What are the standard overdraft practices that come with Bank of Hawaii accounts?
We may authorize and pay overdrafts for the following types of transactions*. Please note that the payment of an overdraft is at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, the item will be returned unpaid or the transaction declined and you will be charged a Non-Sufficient Funds Item Returned/Returned Item Fee. If we do authorize and pay an overdraft, a Non-Sufficient Funds Item Paid/Overdraft Fee will apply and you must repay the amount of the overdraft promptly without notice or demand from us.:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transaction unless preauthorized to do so using Debit Card Overdraft Coverage*. For more information about this service, refer to the section Debit Card Overdraft Coverage.

  • ATM transactions
  • Everyday (or one-time) debit card transactions

What fees will be charged if Bank of Hawaii pays an overdraft?
Here are the details of how overdraft fees are assessed under our standard overdraft practices:

  • Fee: We will charge a fee of $26 each time we pay an overdraft or an item is returned for insufficient funds.  
  • Daily limit: An account will not be charged more than three Overdraft and/or Returned Item fees for insufficient funds on any one day per account. This means that if there are four items of $2.50 or more with insufficient funds on any one day, you will only be charged a fee for the first three. There is no limit on the total fees we can charge you for overdrafting your account. An account will not incur any fees for insufficient funds on any day that the ending account balance is or would have been overdrawn by less than $5. If an item under $2.50 causes an overdraft, you will not incur an Overdraft or Returned Item fee.

Learn how to avoid overdraft fees

The best way to avoid overdrafts is to keep track of all your account transactions.

We offer the following tools to help you manage your funds responsibly and avoid overdrafts:

Overdraft Protection from Savings >
This service can help prevent returned checks and overdrafts on your checking account. If you do not have sufficient funds in your checking account to cover a transaction, we will transfer funds automatically from your designated savings account to your checking account. There are no fees to sign up. However, transfer and other fees1 apply when a transfer is made.

Bankoh CoverCheck >
For added peace of mind, Bankoh CoverCheck provides automatic overdraft protection up to your available credit limit. An application and credit approval are required and there is an annual fee. Certain requirements and restrictions apply, please see Bankoh CoverCheck Agreement and Disclosure Statement for further details.

e-Bankoh Online Banking2 >
With e-Bankoh Online Banking, you can monitor the balances in your accounts and make transfers between your accounts. There is no charge for this service or for transfers between accounts. If you are ready to enroll, click here.

e-Mail Alerts >
With this service, you can specify a balance level and receive an e-mail alert whenever your balance falls below that level. Sign-up within e-Bankoh Online Banking.

e-Bankoh Mobile Banking3 >
Check your available balance before making a purchase using our mobile banking app. Install the Bank of Hawaii app on your iPhone® or iPad® or AndroidTM device, or visit m.boh.com on your mobile device.

SmartMoney Seminars >
Our SmartMoney Seminar focusing on the Basics of Banking will help educate you on how to manage your money.  SmartMoney Seminars are free and open to the public. 

1Please see our fee schedule and Overdraft Protection from Savings Authorization Form for more information. Not available for EASE by Bank of Hawaii accounts.
2 Additional services available. Fees may apply.
3 Mobile Banking Service requires enrollment in e-Bankoh Online Banking. An internet-enabled device is required to access e-Bankoh Mobile Banking or m.boh.com. Standard data usage fees apply. Please contact your carrier for details. Text messaging fees from your wireless carrier may also apply. Your mobile device must be registered through the Mobile Banking Service enrollment process.
iPad® and iPhone® are registered trademarks of Apple® Inc., registered in the U.S. and other countries.
AndroidTM is a trademark of Google Inc.

When there are insufficient funds, what is the benefit to having my transaction paid?

If the bank pays your transaction, this may prevent finance charges, fees or other consequences by the payee (e.g., merchant).

How is my available balance determined?

Your current balance is your balance at the start of the day, plus or minus the day’s transactions.  Your available balance is your current balance minus holds.  Holds include deposits with a hold on the amount and Visa® debit card holds for purchases you’ve signed for or made online.  (Please note that for point-of-sale transactions, some merchants obtain authorizations for only a partial amount [for example, gas stations] or a greater amount [for example restaurants] of the purchase.  Therefore, until the actual amount of the transaction is debited from your account, you must factor in the difference.)  You can spend up to the amount of your available balance without incurring a fee for insufficient funds.

Your available balance does not include any available Bankoh CoverCheck, Overdraft Protection from Savings, Cash Advantage funds, or any other debits (e.g. recurring debits, checks) that have not been processed.  Your current and available balances are accessible through e-Bankoh Online Banking, Bankoh by Phone, Bank of Hawaii branches, and Bank of Hawaii ATMs and receipts. Additional information about e-Bankoh Mobile Banking balances can be found here.