overdraft

noun
over·​draft | \ ˈō-vər-ˌdraft How to pronounce overdraft (audio) \

Definition of overdraft

1 : an act of overdrawing at a bank : the state of being overdrawn also : the sum overdrawn

Examples of overdraft in a Sentence

Recent Examples on the Web That means if your partner keeps rinsing the overdraft and refuses to clear it, you are expected to do so. Laura Whateley, refinery29.com, "How To Maintain Your Financial Autonomy In A Relationship," 9 Oct. 2020 The overdraft attracts 3% interest for the first seven days and 1% every day after that. Tope Alake, Bloomberg.com, "Opera’s OPay Eyes North Africa After Breaking-Even in Nigeria," 23 Dec. 2020 Union Bank was charging customers overdraft fees despite the customer having a positive balance at the end of the day, according to the officials. Patrick Rucker, ProPublica, "JPMorgan Chase Bank Wrongly Charged 170,000 Customers Overdraft Fees. Federal Regulators Refused to Penalize It.," 14 Dec. 2020 Zions Bank customers also could get charged many overdraft fees for being just a few bucks short, examiners agreed. Patrick Rucker, ProPublica, "JPMorgan Chase Bank Wrongly Charged 170,000 Customers Overdraft Fees. Federal Regulators Refused to Penalize It.," 14 Dec. 2020 Especially in today's low interest-rate environment, rates don't come close to offsetting fees, such as monthly service charges, ATM fees and overdraft fees. Ken Tumin, CBS News, "4 smart savings strategies for 2021 that you can start now," 26 Nov. 2020 Analysts are warning the Biden administration could crack down on overdraft fees, the banking industry's $11 billion gravy train that critics say punish society's most vulnerable. Matt Egan, CNN, "Bad news for Wall Street: Elizabeth Warren's fingerprints are all over Biden's transition team," 18 Nov. 2020 The scammer deposited several bad checks into the woman’s account and left her with an $800 overdraft. Bob Sandrick, cleveland, "Man with loaded handgun, marijuana & cash passes out in car: Brook Park police blotter," 6 Nov. 2020 That's about how much large banks make on overdraft and related fees every year, according to the FDIC. Aj Willingham, CNN, "5 things to know for October 13: Coronavirus, Supreme Court, Election 2020, Big Tech and Greece," 13 Oct. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overdraft.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of overdraft

1812, in the meaning defined at sense 1

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Time Traveler for overdraft

Time Traveler

The first known use of overdraft was in 1812

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Statistics for overdraft

Last Updated

16 Jan 2021

Cite this Entry

“Overdraft.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overdraft. Accessed 25 Feb. 2021.

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More Definitions for overdraft

overdraft

noun

English Language Learners Definition of overdraft

: an amount of money that is spent by someone using a bank account that is more than the amount available in the account : an amount that is overdrawn from an account

overdraft

noun
over·​draft | \ ˈō-vər-ˌdraft How to pronounce overdraft (audio) \

Legal Definition of overdraft

1 : the act or result of drawing on a bank account for more than the balance also : the amount exceeding the balance in an overdraft
2 : a loan or credit extended on a current account especially to established or institutional customers

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More from Merriam-Webster on overdraft

Nglish: Translation of overdraft for Spanish Speakers

Britannica English: Translation of overdraft for Arabic Speakers

Britannica.com: Encyclopedia article about overdraft

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