VORA
VORADictionaryC1Overdraft
CEFR C1 — Advanced

Overdraft

Definition

(formal, finance) An arrangement with a bank that allows you to spend more money than you have in your account, up to a certain limit, and pay interest on the amount borrowed.

Example Sentences

1The company had to negotiate an overdraft with their bank to cover the costs of the new project.
2Is it common for small businesses to rely on overdraft facilities to manage their cash flow?
3The bank charges high interest rates on overdrafts, so it's essential to keep track of your account balance.
4To avoid going into overdraft, make sure to transfer funds from your savings account before the bill payment is due.
5The new banking regulations aim to reduce the number of people who become trapped in a cycle of debt due to overdraft fees and interest.

More C1 Words

🎧 Hear "Overdraft" pronounced & master it with spaced repetition — free →
VORA · Dictionary · Pricing
© 2026 VORA — voralingo.com · English vocabulary mastery from A1 to C2