Intraday overdraft – A debit occurs in the customer's account resulting in an overdraft which is then covered by a credit that posts to the account during the same business day. Whether this actually results in overdraft fees depends on the deposit-account holder agreement of the particular bank. OVERDRAFT definition : 1. an amount of money that a customer with a bank account is temporarily allowed to owe to the…. Learn more. Bank overdraft is a type of financial instrument that is provided to some customers by the bank in the form of an extended credit facility, which comes into effect once the main balance of the account reaches zero. In other words, bank overdraft is an unsecured form of credit that is mainly used for covering short term cash requirements. Banks offer a credit limit to the bank customers based on their relationship with the bank. The bank levies separate interest and charges towards non ... Learn about overdraft fees, types, and protection options. Understand how banks cover your transactions even with insufficient funds and avoid costly penalties.
