overdraft

[ˈəʊvədrɑːft]

overdraft Definition

• 1. a deficit in a bank account caused by drawing more money than the account holds
• 2. an extension of credit from a lending institution when an account reaches zero

Using overdraft: Examples

Take a moment to familiarize yourself with how "overdraft" can be used in various situations through the following examples!

• Example

  I need to deposit some money into my account to cover the overdraft.

• Example

  The bank charged me an overdraft fee for exceeding my account limit.

• Example

  The bank offers an overdraft protection service to avoid fees and penalties.

overdraft Synonyms and Antonyms

Synonyms for overdraft

• deficit
• negative balance
• credit extension

Phrases with overdraft

• arranged overdraft

  an overdraft that is agreed upon in advance with a bank or lending institution

  Example

  I applied for an arranged overdraft to avoid unexpected fees.

• unarranged overdraft

  an overdraft that occurs when an account holder withdraws more money than they have in their account without prior agreement with the bank or lending institution

  Example

  I was charged a high fee for an unarranged overdraft on my account.

• overdraft facility

  a line of credit offered by a bank or lending institution to cover overdrafts

  Example

  The bank approved my application for an overdraft facility.

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Summary: overdraft in Brief

An 'overdraft' [ˈəʊvədrɑːft] refers to a negative balance in a bank account caused by withdrawing more money than the account holds. It can also refer to an extension of credit from a lending institution when an account reaches zero. Examples include 'The bank charged me an overdraft fee for exceeding my account limit.' and 'The bank offers an overdraft protection service to avoid fees and penalties.' Phrases include 'arranged overdraft,' 'unarranged overdraft,' and 'overdraft facility.'