Finance & Banking

Overdraft

ˈoʊvərdræft

noun

What does Overdraft mean?

Spending more than your account holds.

Example sentence

"The overdraft fee was $35."

American usage tip

Turn off overdraft protection to avoid fees.

Related Finance & Banking words

Credit score
A number (300-850) showing how reliable a borrower you are.
W-2
The annual wage form employers send for taxes.
Annual fee
The yearly cost of holding a credit card.
Paycheck
Your salary payment.
Savings account
An account that earns interest on stored money.
Direct deposit
Salary paid electronically into your account.
Diversify
To spread investments across different assets.
Venmo
A popular peer-to-peer payment app.

Keep learning

More Finance & Banking vocabulary
Browse every word in this category.
Test yourself
Take a quiz on Finance & Banking words.