overdraft(redirected from overdraught)
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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.