What Does it Mean to be Overdrawn?
Finding out that one is overdrawn at the bank can be a sobering experience. Essentially, a checking account is overdrawn when the account holder issues checks that have a face value of more than the balance of the account. Typically, banks charge what is referred to as an overdraft fee, which is a penalty for transactions that require more funds than the account has available. In some cases, banks will cover the checks presented for payment, and debit the amount on the account, resulting in a negative balance. In other cases, the bank will reject the check. In either case, the overdraft fee is still incurred, unless the account holder has some form of overdraft protection arranged with the bank. There can be several reasons why an account may become overdrawn. The most common explanation is simply poor record keeping on the part of the account holder. Rather than deducting check amounts from the available balance with the use of a check register, the account holder puts off the recordi
