Overdraft protection can help prevent your account from being overdrawn due to a returned check or declined transaction. When using your Scottrade® brokerage or Scottrade Bank® account for overdraft protection, we ask that you keep the following in mind:
- Brokerage overdraft protection is designed to cover accidental overdrafts. It is not intended to be used as a sweep account.
- For Brokerage accounts, only the “Cash Available for Withdrawal” balance is eligible to be used for overdraft protection. A hold may be placed on your available funds and may remain in place for up to four business days, depending on the merchant.
- Brokerage overdraft protection will not draw against or create a Margin debit balance.
- Usage of an IRA Brokerage account is not permitted.
- Your Brokerage account cannot be used to cover multiple bank accounts.
- Federal law limits the number of certain withdrawals on any savings account or money market account to six per month. Withdrawals at ATMs are not subject to federal limits.
- For Bank accounts, only the Available Balance is eligible to be used for overdraft protection. The Available Balance is the total funds in your account that are available for immediate use. Your Available Balance consists of your Current Balance minus any pending transactions, such as holds on your account or electronic transactions.
How Long Can Funds Be Held for Scottrade Bank Overdraft Protection?
With overdraft protection, available funds within a linked account are automatically held and transferred to your Scottrade Bank account to cover the overdraft transaction. Funds can be held up to four days for signature based transactions that result in an overdraft. Whereas funds for PIN based transactions are transferred immediately to cover the overdraft transaction.
Where Can You Find Funds Held to Cover an Overdraft?
Whenever funds are held to cover an overdraft they will display in the “Funds Held for Scottrade Bank Overdraft Protection” balance field on your Balance Information page. Funds held for Scottrade Bank Overdraft Protection are not available for withdrawal.
What Accounts Are Available for Overdraft Protection?
Overdraft protection is only available for bank accounts that are linked to a brokerage account.