overdraft

noun

over·​draft ˈō-vər-ˌdraft 

1

: an act of overdrawing at a bank : the state of being overdrawn

also : the sum overdrawn

2

: line of credit

Examples of overdraft in a Sentence

Recent Examples on the Web

Advertisement Some of the areas where the state has declared serious problems of overdraft, such as the Tule and Kaweah subbasins, are also among the regions that did the most aquifer recharge during the last year. —Ian James, Los Angeles Times, 8 May 2024

However, in its report, the Center for Responsible Lending found that users of the apps experienced a 56% increase in checking account overdrafts. —Cora Lewis, Fortune, 3 May 2024

Word History

First Known Use

1812, in the meaning defined at sense 1

Kids Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

: an overdrawing of a bank account or the amount overdrawn

Legal Definition

overdraft

noun

over·​draft ˈō-vər-ˌdraft 

1

: the act or result of drawing on a bank account for more than the balance

also : the amount exceeding the balance in an overdraft

2

: a loan or credit extended on a current account especially to established or institutional customers