overdraft protection
Definition
A checking account feature in which a person has a line of credit to write checks for more than the actual account balance. Instead of getting charged about $25 for bouncing a check, overdraft protection will in effect provide the account holder with an instant loan. The interest rate will be extremely high, but if it is paid off quickly it is usually much less expensive than the bounced check fee. Some banks do charge a fee when an account balance falls below zero even if the account holder has overdraft protection, but it's still significantly less than the bounced check fee.
Cite this definition
Related Terms
draft
Related Research Articles from the InvestorGuide.com University
Choosing a Bank Learn how to choose the best bank for you. Compare features like interest rates, convenience, FDIC membership, size, and minimum deposit. Compare services like direct deposit, ATMs, online banking, credit cards and debit cards.

Introduction to Banking Learn about the basics of banking, as well as alternatives to banks, such as credit unions, brokerages and mutual funds.

Online Banking How can you find the best online bank for you? Within the last decade, online banking has exploded in popularity, and revolutionized the industry, but some banks offer better services than others. Here we look at some things you should consider when you choose an online bank, including account access, security, online bill paying, account aggregation and fees.

Featured Sponsor
Start earning $200 to $900 a day working at home. No experience necessary. Money-back guarantee.
|