What is another word for over-draft?

31 synonyms found


[ ˌə͡ʊvədɹˈaft], [ ˌə‍ʊvədɹˈaft], [ ˌəʊ_v_ə_d_ɹ_ˈa_f_t]

An overdraft occurs when you spend more money than you have available in your bank account. Synonyms for overdraft are shortfall, deficit, negative balance, and debt. A shortfall refers to the difference between the amount that is needed and the amount that is available. A deficit refers to a situation where there is a shortfall that must be covered by borrowing or other financial means. A negative balance simply means that there is not enough money in the account to cover the transactions made. Debt, on the other hand, refers to the amount of money that one owes to another, and an overdraft is a form of debt.

How to use "Over-draft" in context?

When you are familiar with overdraft, it can be helpful to think of it this way. When you open a checking or savings account, the bank agrees to let you overdraw the account by a certain amount before having to charge you a fee. So, if you had $1,000 in your checking account and you wrote a check for $1,100, the bank would allow you to overdraw your account by $100, or $100 minus the balance of your account. If your balance dropped below $100, the bank would charge a fee for the privilege of overdrawing your account.

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