Meaning of the word overdraft in English

What does overdraft mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

overdraft

US /ˈoʊ.vɚ.dræft/
UK /ˈəʊ.və.drɑːft/
"overdraft" picture

Noun

1.

a deficit in a bank account caused by drawing more money than the account holds

Example:
I incurred an overdraft when I withdrew more money than I had in my account.
The bank charges high fees for going into overdraft.
2.

an agreement with a bank that allows you to spend more money than you have in your account

Example:
I have an overdraft facility of $1000 on my current account.
You need to apply for an overdraft if you want to use this feature.