2
March
2018

Overdraft /

Přečerpání

Business Term of the Day

Definition

An overdraft occurs when more money is drawn from a bank account than was available there.

Example sentence

Mr. Green refused the bank’s offer of an overdraft facility because he did not need it and believed he could easily succumb to the temptation of spending money he did not have.

Comment

When a checking (in the U.S.) or current (in European countries) account goes into the negative, this effectively means that the bank has provided the accountholder with a loan. An account may have an overdraft facility or authorized overdraft limit up to which the client may draw funds. Overdraft lending can be a very profitable business for banks and other financial institutions. In addition to charging regular, compound interest on clients’ overdraft loan balances (similarly to the charge on credit card balances not repaid within the grace period), they also might charge a lump sum fee at the point in time that the account goes into the negative (an overdraft fee) and even a percentage rate on the available (but unused) overdraft credit line for doing the client the favor of “reserving” that loan for the client.

Definice

K přečerpání dojde, když se z bankovního účtu vyčerpá více peněz, než na něm bylo k dispozici.

Příklad použití ve větě

Pan Green odmítl nabídku banky na možnost přečerpání, protože ji nepotřeboval a myslel si, že by mohl snadno podlehnout pokušení utrácet peníze, které nebyly jeho.

Poznámka

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Business Term of the Day

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