overdraft

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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 ?
Meanwhile, for anyone who overdraws without permission, the charges will continue.
Credit unions should go after the members who choose not to open a checking account because they're afraid they will overdraw.
In many cases, however, customers aren't even aware that they're about to overdraw their accounts, and end up having to pay a $35 fee for a purchase that could easily have been delayed.
When the only arrows available were relatively heavy aluminum arrows, the only way for an archer to shoot lightweight arrows--and thus gain significant arrow speed--was to attach an overdraw and then to cut several inches off his arrows.
Let-off is 65 percent and arrow speeds are 224 fps and 258 fps AMO standard, the latter in overdraw.
According to Moebs Services, an economic research firm in Lake Bluff, IL, three major factors have contributed to the rise and propensity for consumers to overdraw their checking account:
The states, which overdraw more electricity than their quota will be penalized," he said shortly before being made Union Home Minister in what television channels called a "paper reshuffle" of the Union Cabinet.
This change will help customers by reducing the likelihood they may inadvertently overdraw their account and thus eliminate unexpected overdraft fees on these transactions.
The new attitude that the program is not a punishment but a privilege actually encourages people to overdraw accounts and has created financial illiteracy, he said.
The group offers people a pounds 10 buffer zone if they overdraw without authorisation or breach their agreed limit.
Most charge pounds 20 to pounds 30 for every transaction and flat penalties of pounds 20 to pounds 28 for any month you overdraw.
As a result, I typically recommend a relatively short overdraw for those who want to use this route to improve arrow speed.