Overdraft - Wikipedia An overdraft occurs when something is withdrawn in excess of what is in a current account For financial systems, this can be funds in a bank account In these situations the account is said to be " overdrawn "
What is an overdraft? | Consumer Financial Protection Bureau What is an overdraft? An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway Deposits to your account may not be immediately available for your use Always make sure you have sufficient available funds in your account
Overdraft Fees: Compare What Banks Charge in 2025 An overdraft triggers a transfer from the second account to cover the cost of the transaction if there aren’t enough funds in your checking account
Overdraft Protection | Definition, Purpose, How It Works, Benefits Overdraft protection is a service offered by many financial institutions to shield account holders from unintentional overdrafts in their checking accounts This service, when activated, prevents individuals from experiencing declined transactions or bouncing checks because of insufficient funds
Overdraft Services for Personal Accounts - Wells Fargo Learn about Overdraft Protection and overdraft services that can cover your transactions if you don’t have enough available money in your account See how you can avoid overdrafts and overdraft fees
Overdraft Protection: How It Works What It Costs | Britannica Money Overdraft protection programs are basically short-term loans from your bank or credit union If you don’t have enough money in your account, the financial institution might approve a transaction anyway But now you have a negative balance and owe the bank or credit union money
What is overdrafting and how does it work? - Capital One This is called an overdraft—when you spend or withdraw more than you have in your account, but the transaction still goes through 1 Much of the time, this is possible through a service called overdraft protection—or overdraft service 2
Understanding Checking Account Overdraft Protection And Fees Overdraft protection is a service offered by some banks and credit unions that allows customers to overdraw their checking accounts, generally for a fee Having overdraft protection enables
What is an overdraft fee and how can you avoid it? - Bankrate Overdraft fees occur when your account has a negative balance due to a withdrawal, transfer or debit Overdraft fees can be costly, but some banks have eliminated them or cut them Check your