noun · neutral
overdraft
UK/ˈəʊvədrɑːft/US/ˈoʊvərdræft/O·ver·draft
an arrangement with a bank that allows someone to withdraw more money than they have in their account, up to an agreed limit.
Examples
“He went into overdraft after an emergency car repair.”
“The bank charges interest on the overdraft amount.”
“Students should be cautious about using an overdraft as it can be expensive.”
Band 8 sentence
“After an unexpected medical bill, she briefly used an arranged overdraft to cover essential expenses while awaiting reimbursement.”
Collocations
- overdraft facility
- go into overdraft
- arrange an overdraft
Word family
Common mistakes
I have overdrawn→I am overdrawn / I have an overdraft
overdraft on my account→overdraft in my account
Say it for a higher band
5loan→6credit→7+overdraft
Synonyms
short-term loan
Easily confused
loan
“He took out a small loan to pay for the car repairs.”
Related words
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In Shopping & Money
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