# overdraft

/ˈoʊvɝˌdɹæft/ (US) · /ˈəʊvədɹˌɑːft/ (UK) · CEFR B2 · Noun

Source: https://englishreference.com/word/overdraft
Updated: 2026-05-20

## Definition

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.

For teachers: 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.

## Examples

- I accidentally went into an overdraft by paying for groceries.
- The bank charged a high fee for the overdraft, so he had to pay it back immediately to avoid further charges.
- 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.

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