overdraft checking account investment & finance definition
A checking account that allows the account
holder to write checks for more than the actual balance in the account. A
finance charge, which may be quite expensive, is assessed on the amount of the
overdraft. Sometimes overdraft checking accounts draw money from a linked
credit card, in which case a debit to the credit card puts cash in the checking
account and increases the amount of money owed on the credit card.
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