Definition of overdrawn adjective in oxford advanced learners dictionary. Groundwater overdraft is a specific condition in which extraction greatly exceeds the influxes of water mainly recharge. Credit arrangement under which a bank automatically extends a shortterm loan to cover a checks amount that exceeds the check writers drawers account balance. Learn about our full range of available personal loans. The amount by which withdrawals exceed deposits, or the extension of credit by a lending institution to allow for such a situation. Overdraft definition and meaning collins english dictionary. You can complete the definition of overdraft given by the english definition dictionary with other english dictionaries. Making every dollar count phone representatives who speak to customers about their choices under regulation e, for instance, should not be incented to sell customers overdraft. A deficit in a bank account caused by drawing more money that is credited to it.
When the amount of money withdrawn from a bank account is greater than the. Loan arrangement under which a bank extends credit up to a maximum amount called overdraft limit against which a current checking account customer can write checks or make withdrawals. Overdraft is the amount of money by which a payment exceeds the deposit in the account used for the payment. The cash is needed in the business, see overdraft situation, it will need to be left in. Because of recent changes to federal banking laws, cardholders no longer will have access to overdraft protection, thus making moot the issue of overdraft penalties. The signature authorizes that person to conduct business on behalf of the account. An overdraft is an extension of credit from a lending institution when an account reaches zero. Keep within the limit and you will not pay the penalties that come with unauthorised overdrafts. Definition and synonyms of overdraft from the online english dictionary from macmillan education.
A check that is drawn on an account containing less money than the amount stated on the check. Overdraft definition in the cambridge english dictionary. Overdraft provision of instant credit by a lending institution. A glossary of terms used in payments and settlement systems bis. Whether this actually results in overdraft fees depends on the depositaccount holder agreement of the particular bank. Search overdraft and thousands of other words in english definition and synonym dictionary from reverso. This produces an unsustainable condition characterized by sustained declining water levels.
An overdraft facility linked to your everyday transaction account is an unsecured line of credit. Overdraft definition is an act of overdrawing at a bank. Book overdraft is a situation when a company issues checks in excess of what the bank balance is, but those checks have not been presented for clearance to the bank yet. Nationwide building society is introducing a new single overdraft rate of 39. The most common form of business borrowing, an overdraft is a type of revolving loan where deposits credits are available for reborrowing. Overdraft definition, an act or instance of overdrawing a checking account. This resource will also give guidance to management and staff who work in the. Banks agrees account holder to borrow a certain amount of money for the customers. Overdraft article about overdraft by the free dictionary. An overdraft allows the individual to continue withdrawing money even if the account has. What is overdraft account definition and meaning math. This arrangement ensures the check is not returned bounced due to not sufficient funds nsf which may call for a criminal charge. Overdraft definition of overdraft by merriamwebster. A bank overdraft does not actually result in cash flowing into a business.
Thats why, in a unique project, translegal has teamed up with leading law schools from around the world to create an online multilingual law dictionary linking the worlds legal languages to a single english law dictionary. We use cookies to enhance your experience on our website, including to. Bank overdraft meaning in the cambridge english dictionary. The term bank overdraft refers to a withdrawal of money that is greater. Overdraft protection synonyms, overdraft protection pronunciation, overdraft protection translation, english dictionary definition of overdraft protection. Overdrafts legal definition of overdrafts legal dictionary. Business an act or instance of overdrawing a checking account. Dictionary of banking terms and phrases helpwithmybank. If a customer wishes to borrow more than his or her overdraft allows, or over a longer period, they might be better off with a different kind of credit.
What fees and charges apply to a business overdraft. Much like overdraft of a bank account, groundwater overdraft is not a desirable state of affairs. A deficit caused by the withdrawal of more money from an account than the account currently holds. A bank overdraft is a line of credit that covers your transactions if your bank account balance drops below zero. Overdraft a situation in which a bank customer withdraws more from hisher account than heshe had previously deposited. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. Overdraft protection article about overdraft protection. Overdraft definition of overdraft by the free dictionary. Loan arrangement under which a bank extends credit up to a maximum amount called overdraft limit against which a current checking. Overdrafting definition, the removal of more water from ground and surface basins than is replaced by rain and melting snow. This is the british english definition of overdraft. The term overdraft is also used in reference to the condition that exists when vouchers or purchase orders are drawn in amounts exceeding the amount that has been appropriated or budgeted crossreferences. An overdraft account let an individual to withdraw money from the account even when the available account balance goes below zero.
If you have an overdraft, you have spent more money than you have in your bank account. Overdraft facility financial definition of overdraft facility. Wikipedia, lexilogos, oxford, cambridge, chambers harrap, wordreference, collins lexibase dictionaries, merriam webster. The bank may or may not honor the overdraft, depending on. When an overdraft occurs in a business setting, the transaction is typically. The amount of an overdraft at any one time will depend on the cash flows of the business, the timing of receipts and payments, seasonal trends in the sales and so on. A credit agreement made with a financial institution that permits an account holder to use or withdraw more than they have in their account, without exceeding a specified maximum negative balance. Change your default dictionary to american english.
A negative balance in the banks records for the companys checking account. A draft or check written for an amount that exceeds the funds in the account on which the check is drawn. A short term loan that a bank makes to a business automatically if that business otherwise would face an overdraft. If the business finds that an overdraft facility appears to be becoming a longterm feature of the business, the bank may suggest converting the overdraft into a mediumterm loan. Synonyms for overdraft at with free online thesaurus, antonyms, and definitions. Know your money has the following definition of an overdraft. There is typically a maximum or ceiling and a minimum or floor defined in the loan agreement.
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