A short-term source of credit which allows you to overdraw on your account up to a pre-established limit. For example, overdraft protection spares customers both the cost and the personal embarrassment of NSF cheques.
A service that allows the customer to write checks for an amount over and above the amount in their checking account. The overdraft amount and an overdraft fee, if applicable, are automatically transferred from an authorized bank account such as a savings or line of credit.
A credit line from which a check can be paid if there are insufficient funds in the customer's account.
An extra service that most financial institutions offer their checking account clients. The client has a credit limit much like that of a credit card. If the client writes a check for an amount greater than what is in the checking account, the bank automatically writes the client a loan. Interest is charged on this, and usually an annual fee.
When an overdraft occurs on an account, meaning the balance of the account becomes negative, funds are automatically transferred from a line of credit linked to the account to cover the negative balance. Overdraft protection prevents the consumer from having to pay overdraft charges.
A bank service that links a chequing account to either a savings account or line of credit to provide protection against insufficient funds or overdrafts.
A line of credit on which customers can write checks for an amount over and above the balance in their checking accounts.
A service that allows a checking or money market savings account to be linked to another account that provides protection against returned items or overdrafts. Choices can include using a savings account or an overdraft line of credit to provide protection.
A benefit available that involves linking your credit card to your checking account. If you overdraw your checking account, money will be transferred from your credit card account to cover the overdraft, or bounced checks (up to the available credit on your credit card account). There is typically a fee for this service, so it is important to monitor your checking account balance.
A service that allows the customer to write checks for an amount over and above the amount in their checking account. Funds are transferred from their line of credit or other designated account to their checking account as needed. This service must be applied for and approved.
A service offered by banks that ensures all cheques and withdrawals are covered regardless of whether adequate funds are available in the account. Overdraft protection is negotiated up to a predetermined amount, and there is a specified minimum charge. Interest is charged on the overdraft until it is repaid.
Provides protection in the event that a checking account balance is insufficient to cover a check that is drawn on the account. The overdraft amount and an overdraft fee, if applicable, are automatically transferred from an authorized bank account such as a savings or line of credit.
A checking account feature in which a person has a line of credit to write checks for more than the actual account balance. Instead of getting charged about $25 for bouncing a check, overdraft protection will in effect provide the account holder with an instant loan. The interest rate will be extremely high, but if it is paid off quickly it is usually much less expensive than the bounced check fee. Some banks do charge a fee when an account balance falls below zero even if the account holder has overdraft protection, but it's still significantly less than the bounced check fee.
A line of credit to cover insufficient funds.
A line of credit established when a checking account is open to protect the account holder from bouncing a check . Should the account holder write a check exceeding her or his account balance, the financial institution draws on the line of credit to fully clear the check. The account holder pays interest on those funds.
Overdraft protection is a financial service offered by banking institutions primarily in the United States. Overdraft protection advances money to cover an attempt to withdraw money from an account that does not have sufficient funds. Overdraft protection can loan money to cover ATM withdrawals, purchases made with a debit card, electronic transfers, and checks.