Meaning of Bank Overdraft

 

What is an overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. Overdrafts apply to checks, debit cards or other transactions that are paid when the available balance in your deposit account Meaning of Bank Overdraft is less than the amount of the transaction, which creates a negative balance in your account. 

Is an overdraft different from an NSF item?

Yes. An "NSF item" (also called a "bounced check") occurs when an item (such as a check or other transaction presented for payment) is returned unpaid because the available balance in your account is less than the amount of the item.

How can I avoid overdrafts?

Don’t overdraw it.

We recommend that you:

Keep track of how much money you have in your checking account; a great way to do this is by monitoring your account balances with free Personal Loan Online banking.  Remember that some checks and automatic payments may not have cleared yet.

Pay special attention to your electronic transactions

Don’t forget about automatic bill payments you may have set up for utilities, insurance, or loan payments.

What is Overdraft Privilege?

Overdraft Privilege is a discretionary service provided to eligible accounts. It is designed to help guard members against having items returned or declined.Overdraft Privilege is not a line of credit.

What are the requirements for Overdraft Privilege?

Eligible accounts have been opened for at least thirty (30) days and thereafter must be maintained in good standing, which includes:

Continuing to make deposits consistent with your past practices, and depositing at least $400 in your account within each thirty (30) day period

You are not in default on any loan obligation to us

Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien

Is there some other way I can have these kind of transactions accepted without having an overdraft fee charged?

Yes. We always encourage our customers to have a savings or money market account at Finance Seva. If you sign up for Account Linked Overdraft Protection, you can link an eligible account to your checking account. If presented items would cause Meaning of Bank Overdraft  your checking account to become overdrawn, we will automatically make a transfer from your linked account.  Keep in mind, there is a transfer fee every time you use this service, but you will not be assessed an overdraft fee.

What checking accounts are eligible for Overdraft Privilege?

Overdraft Privilege is available on most checking accounts. It is not available on savings account or any account owned by a minor.

What you mean by Bank Overdraft Eligibility Criteria?

Bank overdraft is such a facility offered by banks to their customers setting up a limit, the best of the loan is interest only get charged on utilized amount & generally limit are determined by the respective banks as per the relationship with customers. Both secured & unsecured loans available. Different type of loans has different types of eligibility, even bank overdraft also has eligibility criteria.

Bank Overdraft Eligibility Criteria

Eligibility Criteria depends on various factors like age of individual, repayment history, monthly salary or business sales/turnover, total work experience & Creditworthiness ...etc.