Overdrawn: meaning, definitions and examples

finance situation

Overdrawn refers to a situation where a bank account balance falls below zero, indicating that more money has been withdrawn than is available in the account. This typically happens when withdrawals are made without sufficient funds to cover them. Being overdrawn can lead to overdraft fees, as banks may charge account holders for the privilege of borrowing money to cover the shortfall. It reflects poor financial management and can affect one’s credit rating if it becomes a frequent occurrence.

in deficit, negative balance.

Examples of usage

• She realized her account was overdrawn after checking her balance.

• He was charged a fee because his account was overdrawn by several hundred dollars.

• The bank informed me that my account had been overdrawn for two consecutive weeks.

• Using an overdraft can be handy, but it's important not to get overdrawn often.