Overdraft Protection

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Dictionary Says

Definition of 'Overdraft Protection'

A line of credit that banks offer to their customers to cover their overdrafts. Overdraft protection kicks in when a customer writes a check for more than the amount in their account. 

Also referred to as "cash reserve checking."
Investopedia Says

Investopedia explains 'Overdraft Protection'

Overdraft protection comes at a price. Although it does allow its customers to escape paying overdraft fees, it does charge interest on the amount floated to them. Many banks allow their customers to link their bank accounts to a credit card in order to avoid overdraft charges.
Search results for

'Overdraft Protection'

  • When Good People Write Bad Checks

    http://www.investopedia.com/articles/pf/08/overdraft-protection.asp
    Overdraft protection can help when you overestimate your balance, but it will cost
    you. ... Advertisement - Article continues below. What Is Overdraft Protection? ...

  • Bank Overdraft Changes: What You Need To Know - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Bank-Overdraft-Changes-What-You-Need-To-Know.aspx
    ... Banks also cannot require customers that want overdraft protection on checks and
    recurring debit transactions to opt in on overdraft protection for ATM and one ...

  • Are credit cards and debit cards considered debt instruments?

    http://www.investopedia.com/ask/answers/06/creditanddebit.asp
    ... Whenever a person withdraws more money than what is available in his or her bank
    account, overdraft protection can come into effect and the bank will lend the ...

  • Banking: Managing Your Checking Account | Investopedia

    http://www.investopedia.com/university/banking/banking6.asp
    ... to cover the check. Getting an account with overdraft protection can
    eliminate the problem of bounced checks. However, it won't ...

  • How To Cut Your Banking Fees - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0411/How-To-Cut-Your-Banking-Fees.aspx
    ... Record every transaction in your check ledger as soon as possible. Do not
    sign on to the overdraft protection program at your bank. ...

  • The Ins And Outs Of Bank Fees

    http://www.investopedia.com/articles/pf/07/bank_fees.asp
    ... Overdraft Protection Fees Many people assume that when they hand a bank teller a
    check along with a deposit slip, the money they are depositing will be ...

  • Should You Pawn Your Valuables?

    http://www.investopedia.com/articles/pf/08/pawn-your-valuables.asp
    ... loan options. These include the following: Asking your bank for overdraft
    protection on your checking account. In most cases, overdraft ...

  • How Financial Companies Encourage Bad Habits - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0411/How-Financial-Companies-Encourage-Bad-Habits.aspx
    ... Overdraft Protection Are you a Caucasian woman in her late 30s or early 40s
    with an annual income of around $50,000? If you are, you ...

  • 5 Ways Banks Will Pad Their Profits This Year - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0411/5-Ways-Banks-Will-Pad-Their-Profits-This-Year.aspx
    ... Expect that change to be implemented at more banks this year. 3. Overdraft Fees
    The new legislation also put rules in place about overdraft protection. ...

  • Getting Your Kids Their First Credit Card

    http://www.investopedia.com/articles/pf/09/children-first-credit-card.asp
    ... To avoid overdraft fees, consider using an account that offers overdraft protection
    or help them with a system to track their spending as they go. ...

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