Overdrafts Explained | What is an Overdraft?

An overdraft is a financial service provided by banks that allows individuals to spend more money than they have in their bank account.

When someone has an overdraft, they are borrowing money from the bank, so they can make payments or withdraw cash from their current account even if the balance is zero.

Watch the video to find out what an overdraft is.

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00:01 What is an overdraft?
00:23 Example of using your overdraft
01:12 Why is an overdraft useful?
01:28 Two types of overdraft
01:36 Arranged overdrafts
02:19 Unarranged overdrafts
02:40 Negatives of an overdraft

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#overdraft #finance #money

[gabriellabedford]

Great video as always! I don’t know why I watch them as I know the information and could write the script but I enjoy it nonetheless.

I think you’ve used the wrong brake/break though at 1:24 😊

[ruinfox]

First time being offered an arranged overdraft, £500 right of the bat, so many times ive needed emergency cash a few days before payday, i can see this saving me a lot of stress in the future.

[sleepfacenightfall]

Thank you, Very concise and to the point video.

[MUFC-ep]

How much do u get charged for going over your overdraft limit?