What is an overdraft?
An overdraft is a credit facility aimed to meet the account holder’s short term financial requirements. HBZ offers the account holder an overdraft facility against their deposit maintained with the bank whereby they may borrow on a continuing basis and they pay interest only on the amount and the period it is utilized.
• A. An overdraft occurs when your Available Balance goes below zero, and there are no funds to cover a withdrawal or payment. Typically, your bank will charge you a fee to cover an overdraft. At U.S. Bank, this charge automatically happens after the overdraft occurs. To protect this from happening to your account, please see What is overdraft protection? As an added benefit U.S Bank customers can register online for Security and Account Alerts that will notify you immediately when your account goes below a certain amount or in the negative.
• A. An overdraft occurs when your Available Balance goes below zero, and there are no funds to cover a withdrawal or payment. Your bank will charge you a fee to cover an overdraft fee and at U.S. Bank this charge is assessed the business day AFTER the overdraft actually occurred. To prevent this from happening to you utilize the free text/email alerts that will alert you when your account goes below a certain amount or goes negative, utilize the transaction register given to you, check your account every day and always keep track of your purchases and withdrawals. Overdraft protection is designed to “cover” your account in these cases where an overdraft is unavoidable. With overdraft protection, U.S. Bank transfers money from one account to another to cover the sum of the negative balance. This is HIGHLY recommended for accountholders.
