Overdraft Annual Cost

Definition

  • Fee charged to the accountholder by the institution to cover the overdraft feature on the chequing account. This fee is charged even if the overdraft protection is never activated. This fee may be charged in addition to the one-time fee.

Synonyms
yearly service cost, overdraft annual fee, overdrawn

Related Terms and Acronyms

  • Number of Free Transactions per Month Definition,
    • The number of transactions an account holder is allowed to make before being charged a fee. If the limit is exceeded, a per-item charge is applied. Some accounts offer an unlimited number of free transactions or no free transactions per month.
  • Over-the-limit Fee Definition,
    • A fee charged for exceeding the credit limit on the card.
  • Overdraft (DR) Acronym,
    • The amount that a cheque exceeds the available balance in the payor's account; also insufficient funds.
    Bank account transaction code.
  • Overdraft Protection Definition,
    • A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
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