Money and banking / B2

OHV-uh-drahft/ˈəʊvədrɑːft/

An overdraft is money a bank lets you spend when your account is empty, which you must repay: an arranged overdraft; overdraft limit / fee. Loan is a lump sum; debt is broader; in the red is informal. Quote the overdraft limit in the case, then the APR if given. Mix-up: overdraft vs overdraught (air); overdraft vs draft of an essay; do not write overdraft for a credit-card balance unless the source names the current account.

Meaning

Money a bank lets you spend when your account is empty, which you must repay.

Examples

• “Quote the overdraft limit in the case, then the APR if given, the business paper said.”
• “An unauthorised overdraft featured in the fee table, which is still a named charge — quote the £.”

Good to know

an arranged / unauthorised overdraft; overdraft limit / fee. Close: loan (lump sum) / going into the red. Trap: essay draft / a credit-card balance unless the current account is named. Business and citizenship. Bank spending below zero — quote the limit and the fee.

Near in meaning

arranged overdraft, going into the red, bank borrowing

Topics

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