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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.