What is an overdraft balance?

The term of the overdraft balance concerns the negative account balance that occurs when the check or credit to the account exceeds the available balance. Overdowns occur for many reasons, such as account holders or bank or victimization during robbery. Fees or interest associated with overduments may be costly if the errors over time are repeated. The account holder may be subject to criminal prosecution in cases where the account is deliberately pumped.

The best way to prevent overdrafts is to keep accurate records. The most common reason why the account is overwhelmed is the inability to regularly balance the account or inaccurate records of deposits and selections. Banks sometimes enable the automatic cashier (ATM) or debit cards, regardless of the availability of funds on the account, which is a situation that can be prevented by precise records. Electronic selections are easily forgotten and present if it is not reported. The account holder can also swimInspections, which is a practice that includes consciously writing a proposal to a negative balance in the hope of doing a contribution before debit reaches the bank.

Sometimes errors may occur outside the account holder's control or through the crime of others who create an overdraft balance. For example, a banking institution may incorrectly attribute a deposit to an account without the knowledge holder, or it may attribute the amount for a check in more than written. Some bank accounts have fees associated with them, and the Bank has these debit fees against the account, automatically creates a negative or pumped balance. A ATM card or a debit card on your account could be stolen and created a big pump. Account numbers can be stolen purchases on websites without secure shopping carts.

Regardless of the reasons why the account is pumped, there are consequences that can be serious and costly. HolderThe account that repeatedly writes checks for larger than the balance and cannot develop criminal charges in these proposals. Depending on the bank institution, an overdraft account may be charged anywhere from $ 10 (USD) to $ 40 (USD). Some banking institutions allow for fees for a certain amount of overdraft balances before they charge others for each item submitted. Other banks can charge interest fees based on a percentage of pumping.