overdraft

UK/ˈəʊvədɹɑːft/US/ˈoʊvɚdɹæft/

nounC1Rare in speech; mostly a word you read · #13,985 of 15,258neutral

Other forms: overdrafts

An overdraft is permission to spend beyond what is in the account. An arranged overdraft, overdraft charges, go into overdraft.

An arranged one is agreed in advance and charged at a stated rate, and an unarranged one costs far more, which is where the worst bank charges come from. It is a loan that you drift into rather than apply for.

Definitions of overdraft

1nounoverdraftPermission to spend beyond what is in the account.C1
“I had to use my overdraft to pay the rent this month.”

overdraft is a credit.

Where it comes from

Proto-Indo-European
*dʰregʰ-
Proto-Germanic
*drahtuz — a pulling, drawing
Proto-West Germanic
*drahti
Old English
*dreaht
Middle English
draught
English
draft
English, today
overdraft

Built from

draght · Middle English — that which is pulled; that which is drawn up, a design

From over- + draft. draft A phonetic spelling of draught (compare laughter), from Middle English draught, draght (“that which is pulled; that which is drawn up, a design”), from Old English dreaht, dræht, from Proto-West Germanic drahti, drahtu, from Proto-Germanic drahtuz (“a pulling, drawing”). Cognate with Dutch dracht, German Tracht, Icelandic dráttur. by surface analysis, en + draw + t.

Etymology from Wiktionary, CC BY-SA

Practised in Business & Money

Practise this word

overdraft in the wild

An overdraft occurs when something is withdrawn in excess of what is in a current account.
Overdraft
By analogy, overdrafting of an aquifer refers to extraction of water faster than it will be replenished.
Overdraft
The maximum amount of funds a customer is allowed to draw from a line of credit is typically called the credit limit or overdraft limit.
Line of credit
The term credit limit is commonly used for credit cards whereas the term overdraft limit is more commonly used for bank accounts.
Line of credit
However, the ministry of Finance and economic planning has issued statement in 2022 stopping the issuance of bank overdraft and will prefer injecting more U$D into the market.
Ministry of Finance and Economic Planning (South Sudan)

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From Wikipedia, CC BY-SA 4.0. These sentences were written by other people about their own subjects; they are here to show the word at work, not as anybody’s opinion.

Related words

the draght family

draft

overdraft — used about once every 33,333 pages · #13,985 · point at the bar for the others

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