Discover what an overdraft is, its types, fees, and protection. Learn pros, cons, and smart tips to manage and pay off overdrafts effectively. 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 : What is meant by Overdraft ? Learn about Overdraft in detail, including its explanation, and significance in Finance on The Economic Times. What is Bank Overdraft ? A Bank Overdraft can be defined as a short-term unsecured credit facility provided by the bank to its customers to meet their short-term requirements. A Bank Overdraft gets started when the amount in the customer's account comes down to zero, and the customer wishes to withdraw more. In this scenario, the balance of the customer's account becomes negative. Banks generally provide overdraft facilities to those customers with whom the bank has a good relationship. The ...
