Overdraft
/ˈoʊvərˌdræft/
Definitions
- (n.) A deficit in a bank account caused by withdrawals exceeding the available balance.
She was charged a fee for the overdraft on her checking account.
- (v.) To withdraw more money from a bank account than is available, causing a negative balance.
He overdrafted his account and had to pay an overdraft fee.
Forms
- overdrafts
- overdrafted
- overdrafting
See also
Commentary
Often regulated to protect consumers, overdraft terms should clearly specify limits and fees in agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.