overdraft
A customer receives a letter from the bank about an overdraft on their account.
Noun: 1. A financial deficit in a bank account: An "overdraft" occurs when money is withdrawn from a bank account, resulting in a negative balance. It represents a short-term credit arrangement where the bank allows the account holder to spend more money than is currently deposited. 2. The amount of such a deficit: The specific sum of money by which an account is overdrawn.
- Noun:
- The bank charged a fee for the overdraft. (This describes the deficit event or the credit facility itself.)
- My account has an overdraft of $50. (This specifies the amount of the deficit.)
- She arranged an overdraft facility with her bank for emergencies. (This refers to the pre-approved credit limit allowing temporary negative balances.)
"Overdraft protection": A service offered by a bank to automatically cover transactions that would cause an overdraft, often by transferring funds from a linked account or extending a line of credit, typically for a fee.
- I signed up for overdraft protection to avoid declined transactions.
"To go into overdraft" / "To be in overdraft": Phrases describing the state of having a negative account balance.
- If you spend too much, your account will go into overdraft.
- His current account has been in overdraft for a month.
Overdraw (verb): To withdraw more money from an account than is available, thereby creating an overdraft.
- Be careful not to overdraw your account.
Overdrawn (adjective): Describing an account with a negative balance.
- My account is overdrawn.
- Deficit: A deficiency or shortage, especially of money.
- Negative balance: The state of an account where withdrawals exceed deposits.
- Shortfall: A lack or deficiency in an amount.
Unauthorized overdraft: An overdraft that occurs without a pre-arranged agreement with the bank, usually incurring higher fees.
- The fees for an unauthorized overdraft are very high.
Arranged overdraft: A pre-agreed limit with the bank up to which a customer can overdraw their account.
- My arranged overdraft limit is $1,000.
A customer receives a letter from the bank about an overdraft on their account.
- a draft in excess of the credit balance