OVERDRAUGHT Meaning and
Definition
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Overdraught refers to the amount by which an individual or an organization exceeds the authorized balance on a bank account, resulting in a negative balance. It is essentially the opposite of an overdraft, where the account holder withdraws more money than is available, leading to a negative balance, as opposed to an overdraft, where the bank allows the account holder to withdraw more funds than are present in the account, typically up to a predetermined limit or within an agreed time frame. An overdraught occurs when the authorized balance is surpassed, and the account holder has no permission to exceed this limit.
The consequences of an overdraught often include additional fees or interest charges by the banking institution that holds the account. These charges may be assessed on a daily, monthly, or annual basis, depending on the bank's policies. Financial penalties are usually levied to account holders who consistently maintain an overdraught, as it signifies an inability to manage one’s finances or a lack of responsibility with regard to spending within means. It is important to promptly address and rectify an overdraught as it can have a detrimental impact on credit ratings, financial reputation, and the ability to obtain further credit or loans.
Overall, overdraught denotes a situation where an entity exceeds the authorized balance in a bank account, typically resulting in negative consequences such as fees, penalties, and possible damage to one's financial standing.
Common Misspellings for OVERDRAUGHT
- iverdraught
- kverdraught
- lverdraught
- pverdraught
- 0verdraught
- 9verdraught
- ocerdraught
- oberdraught
- ogerdraught
- oferdraught
- ovwrdraught
- ovsrdraught
- ovdrdraught
- ovrrdraught
- ov4rdraught
- ov3rdraught
- oveedraught
- oveddraught
- ovefdraught
- ovetdraught
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