overdraft


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Related to overdraft: Overdraft Facility

Overdraft

Provision of instant credit by a lending institution.

Overdraft

A situation in which a bank customer withdraws more from his/her account than he/she had previously deposited. For example, if an account holder has $1,000 in the account and withdraws $1,200, this is an overdraft of $200. The bank may or may not honor the overdraft, depending on its policies and the importance of the customer. Usually, however, an overdraft incurs a relatively steep penalty fee.

overdraft

A draft for more than the balance in the account on which the draft is drawn. A bank may honor an overdraft, depending on the importance of the customer and on prior arrangements (if any) to cover overdrafts. See also NSF check.

Overdraft.

An overdraft is a withdrawal from a bank account that exceeds the funds you have available.

If you overdraw your account and you have overdraft protection, the bank will transfer money up to the limit on your line of credit to your account to cover the withdrawal. Although you will pay interest on the amount the bank transfers to your account from your line of credit, it is likely to be less than the substantial fees you pay for each overdraft.

overdraft

a financial facility for advancing MONEY to an individual or business (the borrower) by a COMMERCIAL BANK, SAVINGS BANK etc. (the lender). An overdraft is a form of CREDIT which allows the borrower to withdraw as much money as required up to a prearranged total limit, whereupon interest is charged at a rate related to the base rate of interest on outstanding balances (see INTEREST RATE). In the case of businesses, overdraft facilities are often provided on an indefinite basis, thus providing the borrower with a continuous line of credit used mainly to finance WORKING CAPITAL requirements. See BANK LOAN.

overdraft

see BANK LOAN.
References in periodicals archive ?
To apply, customers can log-in through their Corporate Internet Banking (CIB) account or iBizz mobile application for businesses or directly from the bank's website, where they will get an option of availing an overdraft facility.
Overdraft fee charges most frequently occurred 3 days before a customer's paycheck deposit.
For example, in July, Lloyds Banking Group, the UK's largest current account provider, unveiled plans for a simplified "pay-as-you-go" overdraft charging system, starting from A spokeswoman for trade body UK Finance said the positive changes made to current accounts are expected to be reflected in data in the coming months.
uk, says: "I'm sure Lloyds won't be the last bank to review its overdraft tariff in the next few months.
At the same time, the agency released a new report showing that customers of the largest banks who have opted in to debit card and ATM overdraft typically pay $450 more a year than those who do not.
HSBC: "We are removing interest charges on unarranged overdrafts on our most popular accounts, including HSBC Bank Account, HSBC Advance as well as our Graduate Account, and retaining the policy of not charging more for an unarranged overdraft than by the amount the customer is overdrawn, up to a maximum of PS80 a month.
CBA conducted an internal review which identified a programming error in the automated serviceability calculator used to assess certain applications for personal overdrafts.
2 FREE PS150 BANK SWITCH BONUS Best for those who just dip into their overdraft IF AT the end of the month you occasionally slip into overdraft, www.
Banks offer overdraft programs as a service that imposes a fee on a consumer's account when the consumer spends or withdraws more money than is available.
emergency, access the overdraft you've paid off again.
Ian Williams, director of communications at thinkmoney, said: "Slipping into overdraft territory is a common fear - and the charges soon mount up, especially for those who don't have an authorised overdraft.
There are banks that offer free authorised overdraft facilities - First Direct gives a PS250 interest-free overdraft, Santander a fee-free overdraft for four months and Nationwide for three months.