What Is an Overdraft Balance?

Overdraft of deposits refers to the overpayment of deposits. In a certain sense, it is another form of loan. In this form, the bank allows a company's deposit account to issue checks in excess of its deposit balance within the agreed limits, and gives a form of livelihood and live receipt, also known as a "deposit-loan-one" account. Where collateral is provided during an overdraft, it is called "mortgage overdraft", and without collateral is called "credit overdraft". The overdraft account can deposit money at any time to return the overdraft loan, and the bank will collect interest on its overdraft balance on schedule. There is also "interbank overdraft", which refers to a form of interbank financing. ^[1]