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overdraft Definition

over·draft (ō′vər draft′)

noun

    1. a withdrawal of money from a bank in excess of the amount credited to the drawer
    2. the amount withdrawn in excess
  2. a draft, or current of air, passed over a fire, as in a furnace, or passing down through a kiln

overdraft Finance Definition
Credit issued by a bank if a check is written on an account that does not have sufficient money to cover it and the bank chooses to approve the check. Often banks link a customer’s savings account or credit card to the checking account to cover overdrafts, and an overdraft fee will be charged.
overdraft Usage Examples

Converse of object

  • authorize: The charges on authorized overdrafts & loans - these vary from bank to bank.
  • repay: In fact, he suggested that we should be trying to repay the overdraft, not increase it.
  • agree: Neither do you pay standing order fees, direct debit fees or for fees on agreed overdrafts.
  • arrange: Bank overdrafts Make sure you arrange the overdraft with the bank in advance.
  • extend: One week into rehearsals the bank refuses to extend the overdraft any longer.

Preposition: at

  • bank: The overdraft at the bank stood at more than £ 17,000.

Adjective modifier

  • interest-free: Most banks now offer interest-free overdrafts of up to a few hundred pounds to all students.
  • unauthorized: The bank is not obliged to give you an unauthorized overdraft.
  • free: Some banks are only offering interest free overdrafts for the first year of study.
  • increased: As a ufirst customer your increased overdraft will benefit from preferential rates.
  • huge: The only thing he was missing out on was a huge overdraft.
  • existing: He also insisted that I should incorporate my existing overdraft into the loan, resulting in a total loan of £ 14,500.

Modifies a noun

  • limit: Recently I reached the overdraft limit on my account, thank god I do not own any cards.
  • facility: He got a £ 2000 overdraft facility from his bank.
  • lending: In recent years there has been a shift away from overdraft lending toward term lending.
  • borrowing: In the second quarter of last year, overdraft borrowing was static.
  • buffer: Interest-free overdraft buffer for 12 months when you deposit your monthly salary to Citibank at the time of opening your account.
  • charge: The average overdraft charge over the agreed limit is 2 % a month, or 24 % a year.

Noun used with modifier

  • bank: Bank overdrafts Make sure you arrange the overdraft with the bank in advance.
  • %: Alliance & Leicester offers a 0 % overdraft for the first 12 months on its Premier accounts.