Overdraft

Definition

A facility allowing a bank account holder to withdraw more than their balance.

Visual Reference

Example

Overdraft plays a key role in banking operations and personal borrowing decisions.

In Practice

Also known as: OD, Bank Overdraft. Closely related to Credit Limit, Loan.

Word Usage

Current accounts; Short-term finance; Business liquidity

Use Case

Applied in Banking & Interest contexts: Current accounts; Short-term finance