What is an Overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but the bank pays the transaction anyway. You can overdraw your account through checks, ATM transactions, debit card purchases, automatic bill payments, and electronic or in-person withdrawals.

Many banks offer programs in which the bank generally pays the transaction and charges you a fee.

TIP:
Deposits to your account may not be immediately available for your use. Always make sure you have sufficient funds in your account. Even if you just made a deposit, you may still overdraw your account.

For more information about how you can prevent overdraft fees, please visit this link.