C1nounmoneybusiness
US/ˈoʊ.vər.dræft/
UK/ˈəʊ.və.drɑːft/
money you take from your bank account that is more than you have in it, which you must pay back
In context
The bank charges a $35 fee every time you go into overdraft.
After paying the rent, he had an overdraft of nearly two hundred dollars.
Ask your bank about overdraft protection before you apply for a new debit card.
Words that go with overdraft
noun + noun
- overdraft feeThe overdraft fee was higher than the purchase itself.
- overdraft protectionShe added overdraft protection to her checking account.
- overdraft limitThe overdraft limit on this account is $500.
verb + noun
- avoid an overdraftSet up alerts so you can avoid an overdraft at the end of the month.
- run up an overdraftHe ran up an overdraft during his first year of college.
- pay off an overdraftIt took her three months to pay off the overdraft.
Common mistakes
Incorrect:
I overdraft my account.Correct: My account is overdrawn.