Overdrafts: the most expensive 'free' money
Your balance says −$200. Your bank is charging you for that, every single day.
The simple version
An overdraft lets you spend more than you have. It's a loan, and many banks charge high interest or daily fees on it. Going over your agreed limit, or using one you didn't arrange, usually costs even more.
Try your usual overdrawn amount.
Open in Tools to save your numbers →Your move
You're overdrawn every month for about a week. What's the best fix?
Key takeaway
Treat an overdraft as an emergency tool, not extra income. A small buffer beats a big limit.
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Last checked September 28, 2026 · Example figures; rules vary by country · General education, not financial advice