Overdraftprotection


 * Overdraft protection**- if there isn’t sufficient funds your bank account, overdraft protection will cover it, but you pay a monthly fee for this service.

A checking account feature in which a person has a line of credit to write checks for more than the actual account balance. Instead of getting charged about $25 for bouncing a check, overdraft protection will in effect provide the account holder with an instant loan .The interest rate will be extremely high , but if it is paid off quickly it is usually much less expensive than the bounced check fee. Some banks do <span class="wiki_link_ext">charge a fee when an account <span class="wiki_link_ext">balance falls below zero even if the account holder has overdraft protection, but it's still significantly less than the bounced check fee.
 * //Definition//** (taken from www.investorwords.com )


 * Note-** Overdraft protection is a useful "insurance" to get if you are undisciplined and often spend more than is in your checking account.

What is overdraft protection good for? 1. Preventing bouncing a check. 2. Keeping money in your checking account. 3. Protecting you from overdrafting. 4. All of the above.