WordValeoverdraft
withdrawing more money than an account holds
In more detail
1. (noun) an amount of money that you owe a bank when you have withdrawn more money from your account than you had in it
2. (noun) an arrangement with a bank that allows you to withdraw more money than you have in your account
Examples
- 1. I had to pay a fee because I went into overdraft last month.
- 2. The bank offered me an overdraft of $500 so I could cover unexpected expenses.
How to use overdraft
Overdraft refers both to the money owed to the bank and the agreement allowing this borrowing. It is commonly used in British English banking contexts and is neutral-to-formal in register. The term implies a temporary or recurring arrangement rather than a formal loan.
Common phrases
- overdraft facility
- overdraft limit
- go into overdraft
- overdraft charges
- arrange an overdraft
Synonyms
bank overdraft · negative balance · deficit
Word family
overdraw · overdrawn
A common mistake
Learners sometimes confuse overdraft with outstanding debt or credit card debt; overdraft specifically refers to withdrawing more than available in a checking/current account.
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