- An extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically the bank allows people to borrow a set amount of money.
If you have an overdraft account, your bank will cover checks which would otherwise bounce. As with any loan, you pay interest on the outstanding balance of an overdraft loan. Often the interest on the loan is lower than credit cards.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
overdraft — over·draft / ō vər ˌdraft/ n 1: the act or result of drawing on a bank account for more than the balance; also: the amount exceeding the balance in an overdraft 2: a loan or credit extended on a current account esp. to established or… … Law dictionary
overdraft — s.n. Ordin de plata către bancă a unei operaţiuni în lipsa temporară a mijloacelor băneşti în contul clientului. Trimis de emilia, 01.11.2004. Sursa: Neoficial OVERDRAFT s. n. (fin.) restrângere a creditelor fără acoperire. (< engl.… … Dicționar Român
Overdraft — O ver*draft , n. (Banking) The act of overdrawing; a draft in excess of the credit balance; also, the amount or sum overdrawn. [Webster 1913 Suppl.] … The Collaborative International Dictionary of English
Overdraft — Overdraft. См. Скручивание листа вверх. (Источник: «Металлы и сплавы. Справочник.» Под редакцией Ю.П. Солнцева; НПО Профессионал , НПО Мир и семья ; Санкт Петербург, 2003 г.) … Словарь металлургических терминов
overdraft — (n.) 1878, in the banking sense, from OVER (Cf. over) + DRAFT (Cf. draft) (n.) … Etymology dictionary
overdraft — òverdraft m DEFINICIJA bank. 1. oblik bankovnog kratkoročnog kreditiranja prema ugovoru o dopuštenom prekoračenju u ugovorenom vremenu 2. svaki oblik prekoračenja ETIMOLOGIJA engl … Hrvatski jezični portal
overdraft — ► NOUN ▪ a deficit in a bank account caused by drawing more money than the account holds … English terms dictionary
overdraft — [ō′vər draft΄] n. 1. a) a withdrawal of money from a bank in excess of the amount credited to the drawer b) the amount withdrawn in excess 2.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 … English World dictionary
Overdraft — I warn you, Sir! The discourtesy of this bank is beyond all limits. One word more and I I withdraw my overdraft! Cartoon from Punch Magazine Vol. 152, June 27, 1917 An overdraft occurs when money is withdrawn from a bank account and the… … Wikipedia
overdraft — a form of loan by which a person with a trading bank current account is given permission to continue making drawings on the account up to an agreed limit, after the balance has been reduced to nil. Glossary of Business Terms Provision of instant… … Financial and business terms
overdraft — UK [ˈəʊvə(r)ˌdrɑːft] / US [ˈoʊvərˌdræft] noun [countable] Word forms overdraft : singular overdraft plural overdrafts a) an agreement with your bank that allows you to spend money when you have no money left in your account overdraft limit (= the … English dictionary