ECONOMICS (CBSE/UGC NET)

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: -It comes under the category of Artificial personal account.

Detailed explanation-4: -An overdraft occurs when you don’t have enough money in your bank account to cover a payment or withdrawal. Overdraft protection is a financial product that allows you to cover the amount of the transaction when you go into overdraft. These transactions can include: debit purchases.

Detailed explanation-5: -An overdraft fee is a common banking fee that gets charged when you spend more than the amount available in your account. This results in a negative balance, and you may be hit with a steep overdraft fee up to $35 (sometimes per transaction).