Aug 19, 2025 · An overdraft allows you to continue transactions when your account lacks funds. This bank-provided credit lets you settle payments but may incur fees and interest. Essentially, it's an …

Feb 7, 2024 · What is an overdraft? An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway. Deposits to your account …

Aug 14, 2024 · This is called an overdraft—when you spend or withdraw more than you have in your account, but the transaction still goes through. Much of the time, this is possible through a service …

The meaning of OVERDRAFT is an act of overdrawing at a bank : the state of being overdrawn; also : the sum overdrawn.

An overdraft occurs when something is withdrawn in excess of what is in a current account. For financial systems, this can be funds in a bank account. In these situations the account is said to be " …

Dec 18, 2023 · At its core, a bank account overdraft occurs when a bank account holder's balance goes below zero, resulting in a negative balance. This situation can be a result of various factors, including …

Overdraft is a financial service offered by banks that allows account holders to make transactions even when their available account balance is insufficient to cover the payment. In simple terms, it gives …

5 days ago · An overdraft is a financial arrangement that allows a bank account holder to withdraw more money than they have available in their account, up to a predetermined limit.

OVERDRAFT definition: 1. an amount of money that a customer with a bank account is temporarily allowed to owe to the…. Learn more.

Basically, an "overdraft" happens when you spend more money than you have. Each time a transaction exceeds your account balance, you experience an overdraft. Your bank or credit union will cover the …