Another Word For Overdraft

Meaning

An "overdraft" refers to a financial situation where an individual or organization withdraws more money from their bank account than the account holds. Essentially, it is a form of short-term borrowing in which the bank allows the account holder to go into a negative balance. This can happen with checking accounts, and it incurs interest and fees as a result.

Synonyms

• Negative balance
• Overdrawn account
• Deficit
• Borrowing limit

Antonyms

• Credit
• Surplus
• Positive balance
• Savings

Etymology

The term "overdraft" is formed from two components: "over," which means "beyond" or "above," and "draft," which refers to a withdrawal of money from an account. The word has been in use since at least the early 20th century.

Examples

1. I received a notice from my bank that my account is in overdraft, so I'll need to deposit some money soon.
2. After the unexpected expenses, I found myself in overdraft and had to adjust my budget for the month.
3. Banks often charge fees when your account goes into an overdraft, so it’s important to keep track of your balance.