BANKING AFFAIRS

Detailed explanation-1: -Overdraft protection is an automatic loan made to your checking account whenever your account does not contain enough cash to cover the checks that you have written against it.

Detailed explanation-2: -An overdraft protection loan is a line of credit attached to your checking account. If you run out of money and you’ve been approved for this type of loan, the line of credit can cover expenses so that you don’t bounce checks, miss payments, or have your debit card denied.

Detailed explanation-3: -Overdraft Protection covers all transaction types – including, for example, ATM and debit card transactions, checks, Bill Pay, and recurring electronic payments.

Detailed explanation-4: -Overdraft protection, sometimes called cash-reserve checking, is used most frequently as a cushion for checking accounts, but it also can be applied to savings accounts. With overdraft protection, even if the account has insufficient funds, the bank will cover the shortfall so that the transaction goes through.