Overdraft
Categories: Banking, Ethics/Morals
A type of protection that you can get from your bank that protects you in case your account is overdrawn.
Overdraft is actually like a short term loan. The bank will cover any costs coming out of your account up to a certain amount of money (even if your bank account hits zero). In most cases, though, you do pay for this privilege. It can be in the form of one-time fees or in increased monthly bank fees.