Overdraft protection allows a bank customer to write a cheque without sufficient funds in the account.

Question

Quizplus · Accepted Answer

Overdraft protection is a service offered by banks that allows customers to withdraw or spend more money than they have in their accounts, up to a certain limit, and avoid costly overdraft fees or declined transactions. This can be in the form of a line of credit, a linked savings account, or other arrangements that cover the shortfall. However, overdraft protection often comes with fees or interest charges, so customers should be aware of the terms and conditions before using it.

Overdraft Protection Allows a Bank Customer to Write a Cheque