Learn about overdraft fees, types, and protection options. Understand how banks cover your transactions even with insufficient funds and avoid costly penalties. Overdraft : What is meant by Overdraft ? Learn about Overdraft in detail, including its explanation, and significance in Finance on The Economic Times. Bank overdraft is a type of financial instrument that is provided to some customers by the bank in the form of an extended credit facility, which comes into effect once the main balance of the account reaches zero. In other words, bank overdraft is an unsecured form of credit that is mainly used for covering short term cash requirements. Banks offer a credit limit to the bank customers based on their relationship with the bank. The bank levies separate interest and charges towards non ... Guide to Overdraft and its Meaning . Here we discuss overdraft protection, types, fee, examples, advantages, and how it works.
