noun a deficit in a bank account caused by drawing more money than the account holds
In accounting, an overdraft is a deficit in a bank account caused by drawing more money than is available.
An overdraft occurs when a customer withdraws more money from their bank account than is available, resulting in a negative balance.
Overdrafts are considered a risk factor in financial institutions' risk management assessments.
An overdraft can incur fees and interest charges, making it important for individuals to manage their finances responsibly.
Frequent overdrafts can negatively impact a person's credit score, as it indicates financial instability.
In a financial article, a writer may explain the concept of overdraft and how it can impact a person's finances.
A psychologist may discuss how overdraft fees can contribute to financial stress and anxiety in their patients.
A banker may explain the benefits and risks of overdraft protection to customers and help them understand how it works.
An accountant may advise clients on how to avoid overdraft fees and manage their finances more effectively.
A financial advisor may recommend strategies to prevent overdrafts and improve cash flow for their clients.
A business owner may monitor their company's accounts to prevent overdrafts and ensure that they have enough funds to cover expenses.
A lawyer may be involved in cases where overdraft fees are disputed or when legal action is taken against a financial institution for unfair overdraft practices.
An economist may study the impact of overdraft fees on consumer spending and analyze how they affect the overall economy.
An educator may include lessons on overdrafts and financial literacy in their curriculum to help students understand the importance of managing money responsibly.
A government regulator may establish rules and regulations to protect consumers from excessive overdraft fees and ensure fair practices by financial institutions.