What is Overdraft?
Overdraft A credit facility that allows a bank account holder to withdraw more money than the current account balance, creating a temporary negative balance within pre-approved limits.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Overdraft” Used in Practice?
The bank offers an overdraft facility allowing account holders to temporarily access additional funds beyond their current balance, subject to interest and fees.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Overdraft” Free with Termify
Master Overdraft and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Overdraft?
A credit facility that allows a bank account holder to withdraw more money than the current account balance, creating a temporary negative balance within pre-approved limits.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Overdraft and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: