Overdraft meaning: An overdraft is a short-term line

An overdraft is a short-term line of credit granted by a bank when checks presented against an account exceed the cash available in the account. Intraday overdraft – A debit occurs in the customer's account resulting in an overdraft which is then covered by a credit that posts to the account during the same business day. Whether this actually results in overdraft fees depends on the deposit-account holder agreement of the particular bank. Understand overdraft in banking, know its meaning , types, and benefits. Learn how overdraft facilities work in India, interest charges, and key uses for businesses & individuals. Guide to Overdraft and its Meaning . Here we discuss overdraft protection, types, fee, examples, advantages, and how it works.