overdraft

noun

over·​draft ˈō-vər-ˌdraft 

1

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

also : the sum overdrawn

2

: line of credit

Examples of overdraft in a Sentence

Recent Examples on the Web

As a result, the bank is seeking a judgment calling for the immediate payment of the overdraft funds and fees. —David Chiu, People.com, 30 Oct. 2024

State residents had significantly more overdrafts from their checking accounts in the three months after using these services than before using them, the center said. —Jon Healey, Los Angeles Times, 22 Oct. 2024

To boot, she got hit with a $19 overdraft fee because her rent check bounced after the fraud took place. —Susan Tompor, USA TODAY, 31 Oct. 2024

Banks can help make their paychecks go further without driving revolving debt by offering a combination of bridge loans to payday, overdraft fee waivers and pay-by-bank. —Expert Panel®, Forbes, 25 Oct. 2024

Word History

First Known Use

1812, in the meaning defined at sense 1

Kids Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

: an overdrawing of a bank account or the amount overdrawn

Legal Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

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