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

[@gabriellabedford3974]

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 😊

[@TwoTeachers]

Thank you Gabriella! We really appreciate you watching the videos and giving us your support 😁 Thanks for the heads up on the brake/break situation 👍

[@pafcpafc870]

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

[@TwoTeachers]

Great question! The charges for going over your overdraft limit can vary depending on the bank or financial institution and the type of account you have. Typically, banks charge overdraft fees or interest on the amount you exceed your overdraft limit by. You would be able to find this information from your bank that you have the account with 👍

[@pafcpafc870]

@@TwoTeachers Thank you 👍