overdraft

Everyday

1. (money) An overdraft is when a bank lets you take out more money from your account than you have in it, so you owe the bank money. tree →
2. (money) An overdraft is the amount of money owed in this way. tree →

In the lessons

A word of adult life and money: parents may talk about being «in their overdraft» or «overdrawn» at the end of the month; banks charge fees or interest. In maths, an overdraft is a negative balance: if you have £50 and spend £80, the balance is −£30. Phrases: «go into an overdraft», «an overdraft limit», «pay off the overdraft».

Examples

• Mum said we were nearly in our overdraft, so no takeaway this week. tree →
• The bank gave Dad an overdraft of £500. tree →
• He had £40 and spent £60, so he had a £20 overdraft. tree →
• Overdrafts can be expensive because banks charge fees. tree →
• They worked hard to pay off their overdraft. tree →
• Her overdraft limit is £200, so she can't spend more. tree →

Note

Countable: an overdraft. Related: «overdrawn» (adjective: my account is overdrawn). Maths link: overdraft = money spent − money in account; the balance is a negative number. An overdraft is borrowed money, not free money.