Overdrawing your account
There may be times when you try to make a transaction but don’t have enough money in your account. This may trigger a payment honour or dishonour fee, so it’s important to know what these are and how to minimise the chance of incurring them.
Preventing your account from overdrawing
If your account is overdrawn, it’s important to top up your balance as soon as possible to avoid overdrawing it further, as you may incur multiple payment honour fees and interest may be charged on the negative balance.
To help avoid them, it’s good to:
- check your account frequently to make sure it has enough funds to cover your transactions. Visit our website to learn about our banking features.
- allow enough time for deposits to be processed before you draw on the funds (some can take up to 5 business days).
- keep track of your periodic payments (including direct debits and recurring payments) and reschedule them if you need to.
- ensure that you regularly check your transaction history or statements and ensure that you are aware of all payments that are coming through to your account. If you wish to cancel a regular payment on your account, if it is a direct debit, you can contact us to cancel it. If it is a payment set up using your card details you will need to contact the merchant/retailer directly to cancel the payment.
- enrol in our SMS and email alerts, which will notify you of withdrawals, balance alerts and many more.
Overdraw Preference Feature
The Overdraw Preference feature is available on eligible personal accounts other than accounts held by persons under 18 years of age and the Concession Account. The feature is by default enabled on eligible accounts unless it has been disabled at your request or at our discretion.
What this means for you
When the Overdraw Preference is enabled, we may allow direct debits, periodical payments, and cheque withdrawals to overdraw your account, or increase the amount already overdrawn at the time of the transaction. A payment honour fee and debit interest may apply. If we do not allow a payment to overdraw (or further overdraw) your account, the payment will be dishonoured and a dishonour fee may apply.
If you request for the Overdraw Preference feature to be disabled, we will decline any direct debits, periodical payments and cheque withdrawals that would cause your account to become overdrawn, or further overdrawn. A dishonour fee may apply for each transaction that is dishonoured.
Situations where your account may still be overdrawn
If your account Overdraw Preference is disabled, some transactions may still cause the account to become overdrawn:
- where (at the relevant time) any of our relevant systems is offline or otherwise impaired or interrupted;
- where the authorisation request is not sent to us, or received by us, for our review and for processing by our system (which may occur, for example, where the transaction is made using a cheque or a card linked to your account); or
- where it is impossible or reasonably impractical for us to prevent your account from being overdrawn.
Under these scenarios, a payment honour fee and debit interest may apply.
Where you can update your account Overdraw Preference
You can update your account Overdraw Preference in Internet Banking (including Mobile Banking), by calling us or visiting your nearest branch. If you have provided a valid email address and mobile phone number to us, you will receive an email or SMS notification on the update.
Where two or more authorised persons must act together (i.e. more than ‘1 to sign’), the account Overdraw Preference (if eligible) can only be changed in branch where the required account holders are present.
Please note: The Overdraw Preference will be updated on the account, and effective for all authorised persons.
Please see your Transaction, Savings, and Investment Accounts: Terms and Conditions (incorporating fees and charges) for applicable fees and charges that may apply.
If your account is no longer available for sale, your account terms and conditions are here.
Experiencing financial hardship?
In these uncertain times, we want to make sure all our customers are getting the support they need. If your circumstances have recently changed and you’re having difficulty managing your finances, we can help.
What are payment honour and dishonour fees?
|Fee type||How it is charged||Cost|
|Payment honour fee||
You may be charged $15 if we honour a transaction that overdraws your account.
- The fee is charged once daily, even if you make multiple transactions that overdraw your account on the same day.
- If you overdraw your account further on another day, you’ll be charged again.
- You’ll also be charged debit interest for as long as your balance remains negative.
|$15 (max. per day) + interest accrued on negative balance1|
You may be charged $5 if your account doesn’t have enough funds to cover a transaction and we decline it.
- This applies to your periodical payments, direct debits, and any cheques you write.
- Bear in mind, these types of payments will be initially processed to your account but dishonoured the next business day, so the fee will be delayed.
|$5 (per transaction)|
Some example scenarios:
Mark pays his $50 phone bill by direct debit.
But he doesn’t realise his account balance is low – only $10 – when the phone bill is processed. This means his account is overdrawn by $40 and he incurs a $15 payment honour fee. If he had opted in to receive low balance alerts, he could have received a notification on his phone and known to top up his account before it was overdrawn.
Jose pays an unexpected bill to fix his car after it breaks down.
But he forgets to check his balance after the transaction is processed, so he doesn’t have enough funds to cover the rent which is paid by direct debit two days later. His account is overdrawn by $200 and he incurs a $15 payment honour fee. If Jose had Quick Balance on his Mobile Banking app, he might have found it easier to monitor his account’s balance and keep it topped up.
Sandra's monthly health insurance fee is dishonoured.
She has changed her account Overdraw Preference to ‘disable’, to prevent her account from overdrawing when it has insufficient funds. One day, the $120 direct debit is processed when she only has $60 in her account, so the transaction is dishonoured. Because of this, she may be charged a $5 dishonour fee, rather than the $15 payment honour fee for overdrawing her account.
Other tools to help you manage your spend
Notifications and alerts
Pre-set an account limit and we’ll send a pop up alert straight to your phone if your balance falls below it. You can opt in to this free service via the Mobile Banking app so you don’t find yourself caught short of funds.
Keep on top of your most recent card activity by setting up Quick Balance. No need to sign in to Mobile Banking; in a flash, you can see your account balance and also your 10 most recent transactions from the past 14 days.
This calculator lets you figure out the ins and outs of your account without having to do the maths. Compare earnings versus daily expenses and splash outs to see where you have room to grow and what needs a little trimming.
Sort your spending patterns into categories via Internet or Mobile Banking. You’re sure to pick up on some handy insights with automatic monthly breakdowns, and you can even drill down further with sub-categories and stats.
Dont have Mobile Banking?
To get the most out of these handy tools and features, you can download the app from the App Store or Google Play.
Are you a concession cardholder?
If you hold a Health Care Card, Seniors Health Card, or Pensioner Concession Card, you may be eligible for a Concession Account, which may only be overdrawn under certain circumstances.2
1. If your account becomes overdrawn and there is no overdraft arrangement in place (or any overdraft arrangement is insufficient to cover the overdrawn amount), debit interest will be charged to your account at the Unarranged Lending Rate. See the Transaction Savings and Investment Accounts Terms and Conditions for more information.
2. Eligible for Health Care, Seniors Health and Pensioner Concession cardholders. This account does not become overdrawn except where it is impossible or reasonably impractical for us to prevent it. See the Transaction Savings and Investment Accounts Terms and Conditions for more information.