Overdraft is a feature provided by many banks to its best customers wherein, the customer can withdraw money from their accounts even if there is not sufficient balance in their account. The overdraft limit is set by the banks based on the customers history with the bank and his earning potential.
An account is said to be overdrawn if the customer has withdrawn more money that what he has in the account.
Only if you do not pay the overdraft.
if the company has overdrawn it balance that means the company ow the bank' in other words the company had made an overdraft, it is the liability to the company..
Bank overdraft charges are the result of someone spending more money than they have in their bank account. The bank then charges interest on the overdrawn amount.
Most banks offer free overdraft protection on your checking account. There is no charge for having it however if you do overdraw your account you will be charged interest on the amount that you have overdrawn.
No, you have no money left. You may however have arranged an overdraft on your account (a loan form the bank) and if this is the case, yes.
Overdraft
In order to close it, you have to pay off the overdraft first.
Only if you do not pay the overdraft.
if the company has overdrawn it balance that means the company ow the bank' in other words the company had made an overdraft, it is the liability to the company..
Bank overdraft charges are the result of someone spending more money than they have in their bank account. The bank then charges interest on the overdrawn amount.
Most banks offer free overdraft protection on your checking account. There is no charge for having it however if you do overdraw your account you will be charged interest on the amount that you have overdrawn.
At the moment of writing the check, the balance is still $50 overdrawn. If the check should be presented to the bank, then your balance will depend upon several factors: If you have an overdraft facility and the $20 check does not exceed this, then your new balance will be $70 overdrawn. If you do not have an overdraft facility, then the bank may bounce (decline) the check, in which case your balance may still be $50 overdrawn. However, they may charge you for bouncing the check as you did not have the funds to meet the check, so your overdraft will be increased by their fee, whatever it is. They may honour the check and your bank balance will be $70 overdrawn. However, they may also charge you a fee for honouring the check when you were overdrawn; thus your balance will be increased from $70 overdrawn by their fee. You may also have received funds before the check was presented, eg you got paid, and so the balance may not be overdrawn and the check honoured without problem.
If you had overdraft protection that linked the two accounts, then yes.
No. You owe the bank money, and have nothing to withdraw. If you have overdraft protection, and you have made a withdrawal, the bank has loaned you money and will charge you additional fees or interest or both, plus the amount of the overdraft.
Bank Overdraft is a facility wherein a bank customer can withdraw more money than what is actually available in his/her account. Let us say I have an overdraft account with ICICI Bank and have only Rs. 5000 in my account, I can withdraw even 15000 or 20000 from my account. I will have to repay this money that I took from them in future or else they will charge me an interest. The bank will also set an Overdraft limit which will define how much money over and above my bank balance I can withdraw. An account where the customer has used his/her overdraft facility is called an overdrawn account
No, you have no money left. You may however have arranged an overdraft on your account (a loan form the bank) and if this is the case, yes.
OD in banking typically stands for overdraft or overdrawn, meaning more cash was taken than was in the account.