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Alexander Capital Group

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Overdraft Meaning – An overdraft is a type of loan that allows you to withdraw more money from your bank account than you have in it. It is a short-term loan that is meant to cover a temporary shortage of funds in your account.

When you overdraft your account, you are essentially borrowing money from your bank. The bank will charge you a fee for the overdraft and you will be required to pay back the loan, plus interest, within a certain period of time.

The amount of money you can overdraft depends on your bank and the type of account you have. Generally, banks will allow you to overdraft up to a certain amount of your account balance. This amount is usually determined by your credit score and other factors.

It is important to understand that over-drafting your account can be expensive. Banks will charge a fee for each…

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