What is overdraft when withdrawing money from bank

Overdraft is services offered by banks to their customers.In overdraft the bank customer is allowed to withdraw upto certain amount of cash when the customer account has less cash or no cash at all.These means that the account holder is allowed to withdraw upto certain amount of cash below the account holder threshold.

This is just form of loan to customer as the customer has to return the cash plus interest that will be imposed by the bank.

Account holder has to inform the bank before they withdrawing overdraft.Failure by the account holder not informing the bank about intention of withdrawing overdraft will result in the account holder paying the the normal interest plus extra fee for not informing the bank.

Overdrafts have assisted businesse's to overcome financial worries during financial difficulties as the business's make use of utilizing the overdraft facilities.

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