An overdraft is an extension of credit by a bank to cover withdrawals or payments (such as bills) from an account lacking sufficient funds.
It is usually the bank that decides whether or not to allow overdrafts, so you should advise it if you do not wish your account to go overdrawn.
If you decide to have overdrafts on your account, you should bear in mind that:
Note that the overdraft fee is different from the past-due notification fee some banks may charge when reminding a customer to repay an overdraft. This fee must be included in the terms and conditions and the bank must have actually taken steps to recover the overdraft before it can charge it.
Find out more in our 2020 Complaints Report (in Spanish) (136 KB)
FREQUENTLY ASKED QUESTIONS
Can I withdraw cash at a branch other than where my account is held?Read answerabout
Can I withdraw cash at a branch other than where my account is held?
How can I move my account from one bank to another?Read answerabout
How can I move my account from one bank to another?