English Reference
Noun

overdraft

n.
B2 Upper Intermediate US /ˈoʊvɝˌdɹæft/ UK /ˈəʊvədɹˌɑːft/ over·draft UK spelling overdraft's, overdraft's

n.a situation where you spend more money than you have in your bank account. You usually pay a fee for this and must pay back the extra amount later.

n.a state of having spent more money than is available in a bank account. Often refers to a prearranged facility allowing a customer to withdraw funds beyond their balance up to a specific limit.


SIMPLE

I accidentally went into an overdraft by paying for groceries.

CONTEXTUAL

The bank charged a high fee for the overdraft, so he had to pay it back immediately to avoid further charges.

COMPLEX

While a temporary overdraft can provide necessary liquidity during a cash flow crisis, it is generally advisable to avoid this practice as it often results in significant interest costs.

They offer an interest-free overdraft, perfect if you’re ever in a tight spot one month.

The Guardian· 19 Aug 2026

Sign-up perks may capture the attention but should the focus be on the interest-free overdraft?

The Guardian· 18 Aug 2026

From over- + draft.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Level B2 · Upper Intermediate
Frequency Occasional
Updated