Overdraft
Withdrawal exceeding available account balance
What You Need to Know
An overdraft occurs when a bank account holder withdraws more money than is available in their account, creating a negative balance. Banks may charge overdraft fees and interest on the negative balance. Overdraft protection services can cover these transactions but typically involve fees.
Sources & References
This information is sourced from authoritative government and academic institutions:
- consumerfinance.gov
https://www.consumerfinance.gov/ask-cfpb/what-is-an-overdraft-fee-en-1907/
Related Calculators & Tools
Put your knowledge into action with these interactive tools:
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