overdraft

noun

over·​draft ˈō-vər-ˌdraft 

1

: an act of overdrawing at a bank : the state of being overdrawn

also : the sum overdrawn

2

: line of credit

Examples of overdraft in a Sentence

Recent Examples on the Web

The average fee costs users $27 per overdraft; in 2023 alone, banks earned $5.8 billion from the fees. —Dylan Matthews, Vox, 5 Mar. 2025

In the waning months of the Biden administration, the Consumer Financial Protection Bureau, or CFPB, released a flurry of new consumer protection rules, targeting everything from bank overdraft fees and credit card late fees to old medical debt on credit reports. —Daniel De Visé, USA TODAY, 21 Feb. 2025

During the Biden administration, the CFPB passed rules capping bank overdraft fees and removing medical debt from credit reports. —Cora Lewis, Los Angeles Times, 15 Feb. 2025

Capping bank overdraft fees: In December, the CFPB finalized a rule capping most bank overdraft fees at $5, down from the typical $35. —Jeanne Sahadi, CNN, 12 Feb. 2025

Word History

First Known Use

1812, in the meaning defined at sense 1

Rhymes for overdraft

• allograft
• autograft
• autographed
• countershaft
• handicraft
• homograft
• hovercraft
• lithographed
• photographed
• rotorcraft
• telegraphed
• understaffed

Kids Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

: an overdrawing of a bank account or the amount overdrawn

Legal Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

1

: the act or result of drawing on a bank account for more than the balance

also : the amount exceeding the balance in an overdraft

2

: a loan or credit extended on a current account especially to established or institutional customers