BANKING AFFAIRS

Detailed explanation-1: -An overdraft occurs when there isn’t enough money in an account to cover a transaction or withdrawal, but the bank allows the transaction anyway. Essentially, it’s an extension of credit from the financial institution that is granted when an account reaches zero.

Detailed explanation-2: -An overdraft occurs when you don’t have enough money in your account to cover a transaction, and the bank or credit union pays for it anyway. Transactions include ATM withdrawals and debit card purchases as well as checks and ACH payments (such as online bill payments).

Detailed explanation-3: -Overdrawn account A bank account is overdrawn if your balance goes below zero.

Detailed explanation-4: -Overdraft protection: Overdraft protection is a bank service that automatically transfers money from a linked savings account when there’s not enough in your checking account to cover things like debit transactions, checks or electronic payments.

Detailed explanation-5: -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.