overdraft

[oh-ver-draft, -drahft]

noun

1. an act or instance of overdrawing a checking account.

2. a check overdrawn on a checking account.

3. the amount overdrawn.

4. an excessive drawing on or drawing off of something.

5. a draft made to pass over a fire, as in a furnace.

6. a draft passing downward through a kiln.

7. Metalworking.,  a tendency of a rolled piece to curve upward after passing through a stand, occurring when the lower roll is faster than the upper.

overdraft

/ ˈəʊvəˌdrɑːft /

noun

1. a draft or withdrawal of money in excess of the credit balance on a bank or building-society cheque account

2. the amount of money drawn or withdrawn thus

overdraft

1. The amount by which a check exceeds the funds on deposit to cover it.

Word History and Origins

Origin of overdraft¹

First recorded in 1875–80; over- + draft

Example Sentences

The mysterious addressee was then sent seven letters, a bank card, a PIN, overdraft limit warnings and a warning that an outstanding debt could be referred to a credit reference agency.

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For others it could be a cheaper option to avoid overdraft fees or high-interest short-term loans.

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Experian said it was overhauling its scoring system to better reflect "more of the everyday financial behaviours that matter" which included things "like paying rent or reducing overdraft use".

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Now for the truly hilarious part: U.S. banks get free intraday overdrafts from the Fed.

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Before 2008, banks paid fees for overdrafts and managed their liquidity carefully.

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Related Words

• default 
• disaster 
• failure 
• insolvency 
• liquidation 
• loss