bank overdraft

Definition

When an individual or company takes out more from an account and the balance drops below the allowed amount by the financial institution.

Use bank overdraft in a sentence

You should always make sure that you do not take out a bank overdraft or you will have to pay some high fees.

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John Smith was very careful to keep track of his deposits and credits to avoid high bank overdraft charges and fees.

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We tried not to write any checks that our account balance couldn't cover due to the extremely high bank overdraft fees.

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