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. ...