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

This account comes with no overdraft or monthly fees and offers a $30 bonus for students who open an account. —Kody Boye, Journal Sentinel, 12 Dec. 2024

During the Great Recession of 2007-2014, overdraft revenue hit its peak, short of $40 billion in gross revenue for all financial institutions in the nation, explained Michael Moebs, economist and chair of Moebs $ervices. —Bill Hardekopf, Forbes, 5 Dec. 2024

However, a Center for Responsible Lending study found that, for consumers who took out these advances, checking account overdrafts increased by 56%. —Anthony G. Brown, Baltimore Sun, 4 Nov. 2024

The filing also details various legal proceedings, including ongoing litigation related to overdraft fees, which the company intends to defend vigorously. —Quartz Bot, Quartz, 8 Nov. 2024

Word History

First Known Use

1812, in the meaning defined at sense 1

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