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 ?
She said: "Yes, a pettycash account should never be overdrawn."
Sharon Ariana Reilly added: "I've been overdrawn a few times - the amount of money they charged me for this was bad.
They were also informed that if they did not choose to opt in for overdraft protection, their transactions could be denied if their account was overdrawn. They were then asked whether, based on that knowledge, they will choose - or did choose - to have overdraft protection.
Earlier this month Royal Bank of Scotland, which also offers current accounts under its NatWest brand, announced it was slashing fees for returning bounced cheques and standing orders from Au38 to Au5, while fees for paying for goods while overdrawn have been halved from Au30 to Au15.
She added that employees would be refunded any charges if their accounts were overdrawn or if they breached their overdraft limit as a result of the problem.
In fact, some of us have such a low balance in our love bank that if we hang out late with the fellows, we're subject to be overdrawn. Don't call her.
That said, the authority of Gibbon is often overdrawn. His obvious command of the facts and copious documentation are often overshadowed by his pompous tone, overuse of certain stock words and phrases, and blatant hostility to Christianity.
In a move aimed at helping consumers fend off high fees for overdrawn checking accounts, the Federal Reserve and other financial institution regulators announced publication of a new brochure, Protecting Yourself from Overdraft and Bounced-Check Fees.
At bigger odds it could pay to take a chance on Overdrawn. We have to forgive a tame effort at Epsom last time, but that switchback track does not suit every horse and Overdrawn has shown all his best form on flat courses, including three good runs in nurseries at Doncaster last year.
Lilian, who is a senior shop steward for Unison, said she has become overdrawn at the bank as a result of not being paid the money which she is owed.
Not only does this make reading certain sections of the book a tedious process, but Hunt sometimes makes startling, overdrawn conclusions that seem unsupported by her evidence, (As an example, after a lengthy discussion about the practice of embryotomies, she writes "The exigency of detestable embryotomies, their loathsome aesthetics, the sacrificing of beautiful brown babies for the descendants of cannibals--such topoi were likely part of a missionary point of view at Yakusu" [p.
Other features include overdrawn account warnings, memorized transactions, fast data entry with quickfihl, account balances at a glance, and the ability to record split transactions.