Overdraft Protection

Business / Taxes / Overdraft Protection: Overdraft protection is a bank line of credit. It’s activated if you have insufficient funds to cover a check written against your account, up to a predetermined limit. As with other forms of credit, you are charged interest once the line of credit is activated. If you qualify for it, overdraft protection can help you avoid the fees, inconvenience, and embarrassment of accidentally bouncing a check. However, because banks often charge relatively high interest rates for the service, it’s best to repay the transferred amounts quickly. And some banks charge a monthly fee for having overdraft protection linked to your account, even if you don’t use it. Others may not offer the protection on low-cost accounts.

Other Words for Protection

Protection Adjective Synonyms: defense, screen, shield, barrier, guard, safeguard, immunity, bulwark, buffer, shelter, refuge, haven, sanctuary, security, safe keeping, safety, preservation
Protection Verb Synonyms: extortion, blackmail, protection money
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Overdraft

Business / Accounting / Overdraft: Lack of sufficient funds to cover the full amount of a check. MORE

Order Protection Rule

Business / Taxes / Order Protection Rule: The order protection rule, part of Regulation NMS — for National Market System — adopted by the Securities and Exchange Commission (SEC) in 2005, requires that every stock trading center establish MORE

Overdraft Protection

Business / Accounting / Overdraft Protection: Procedure agreed upon by an account holder and a bank in advance to transfer funds from a savings or credit account to a checking account to cover insufficient funds. MORE

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