BANKING AFFAIRS

Detailed explanation-1: -An overdraft occurs when an account lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway. The overdraft allows the customer to continue paying bills even when there is insufficient money. Many banks impose additional fees or penalties for overdrawn accounts.

Detailed explanation-2: -An overdraft occurs when you don’t have enough money in your account to cover a transaction and the bank pays it. Examples are overdrafts caused by check, in-person withdrawal, debit card purchase, ATM withdrawal, or other electronic means.

Detailed explanation-3: -If your balance goes into overdraft, the funds are transferred automatically to your checking account to cover the difference. In other cases, the bank won’t return the transaction and process it, which means you’ll be charged fees until you deposit money to cover the difference.

Detailed explanation-4: -An overdraft is a negative balance in your account. An overdraft occurs when you spend more money than you have available in your checking account and the Bank pays your transaction anyway.

Detailed explanation-5: -Overdrawn account A bank account is overdrawn if your balance goes below zero. This can happen if: it looks like you have money to take out but another transaction hasn’t gone through yet. you use direct debit to pay your bills.