When managing your finances, understanding banking terms and services is crucial. You might have come across the abbreviation ONB, especially when dealing with financial matters. So, What Does Onb Mean in the context of banking? ONB stands for Old National Bank. This institution provides a range of financial services, including solutions to help you manage your account balances and avoid issues like declined transactions. Among these solutions are Overdraft Courtesy and Overdraft Protection. Let’s delve into what these services mean when you bank with Old National Bank (ONB).
Overdraft Courtesy with ONB
Many checking accounts at Old National Bank (ONB) come with a service called Overdraft Courtesy. This service is designed as a safety net. If you happen to write a check or have an ACH or recurring debit card transaction (like your monthly utility bill) that exceeds your available balance, ONB may still approve and pay these items.
It’s important to understand that Overdraft Courtesy is not free. While there’s no cost to have the service itself, fees apply if you use it. Here’s how it works:
- Overdraft Fee: If your account becomes overdrawn by more than $25, ONB will charge a fee of $36 for each overdraft item. You could be charged this fee up to a maximum of 2 times per day.
- Responsibility to Repay: You are responsible for immediately repaying the overdrawn amount to bring your account balance back to positive.
- Extended Overdraft Fee: If your account remains overdrawn for 7 or more consecutive business days (and is overdrawn by more than $25), ONB will charge a further $7 Daily Overdraft fee for each business day the account remains overdrawn (starting on day 7). This daily fee can be charged for up to 5 business days.
Overdraft Courtesy is there to help prevent declined transactions for essential payments, but it’s best used as an occasional safety net due to the associated fees.
Overdraft Protection with ONB
Old National Bank (ONB) also offers another service called Overdraft Protection. This service provides a different approach to managing potential overdrafts. Overdraft Protection allows you to link your checking account to another account you have at ONB. This could be another checking account, a savings account, a money market account, or even a line of credit.
Here’s how Overdraft Protection works:
- Linked Account Transfer: If you overdraft your checking account, ONB will automatically transfer funds from your linked account to cover the overdraft.
- Transfer Amount: The transfer will be for the exact amount needed to cover the total overdraft at the end of each business day, assuming your linked account has sufficient funds.
- No Annual Fee (Personal Accounts): There is no annual fee to have Overdraft Protection on personal accounts. (Note: For business analysis accounts, a transfer fee of $5 is charged per transfer).
- Insufficient Funds in Linked Account: If your linked account doesn’t have enough funds to cover the entire overdraft, ONB will transfer whatever is available. Any remaining overdraft items may be paid or returned at ONB’s discretion, and applicable fees may apply.
Overdraft Protection can be a more proactive way to avoid overdraft fees compared to Overdraft Courtesy, especially if you have another account with readily available funds.
Combining Overdraft Solutions at ONB
For even greater peace of mind, Old National Bank mentions that Overdraft Courtesy and Overdraft Protection can be used together. This means that if your Overdraft Protection source (linked account) doesn’t have enough funds, Overdraft Courtesy might still kick in to cover the transaction (though overdraft fees would apply).
Getting Started with ONB Overdraft Services
To sign up for Overdraft Protection or to get more detailed information about both Overdraft Courtesy and Overdraft Protection, you can:
- Visit an Old National Bank Banking Center: You can find a local branch to discuss your needs in person.
- Call Client Care: Contact ONB’s Client Care at 1-800-731-2265 to speak with a representative who can assist you.
Understanding your bank’s overdraft services is an important part of responsible financial management. Knowing what does ONB mean and the services Old National Bank offers can help you make informed decisions about protecting your account and avoiding unnecessary fees.
