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Overdraft

UK //ˈəʊvədrɑːft//US //ˈoʊvərdræft//

Definition

An agreement allowing a bank account holder to withdraw more money than is available.

In simple words: A negative balance in a bank account.

Examples

I had to pay a fee because I went into my overdraft.
Her account is in overdraft after the unexpected expenses.
You can apply for an overdraft facility with your bank.
The bank notified me that my account is about to enter overdraft.
He usually maintains a small overdraft for emergencies.

Usage notes

Use in banking and financial contexts. It's formal when discussing finances but can be used neutrally in conversation.

Grammar pattern

make + overdraft

Memory hint

Think 'over' + 'draft' - imagine writing a draft that goes over the limit!

Collocations

bank overdraft
overdraft limit
overdraft fees
monthly overdraft
overdraft protection

Synonyms

negative balance
bank overdraft
withdrawal limit
deficit

Common mistakes

Confusing with 'overdraw', which is the action of going into an overdraft.
Using 'overdrafts' in singular contexts, while referring to multiple accounts.
Not recognizing it can be both a noun and a verb in different contexts.