What are overdraft limits and how do they work?

What are overdraft limits and how do they work?

Overdraft limits are the maximum amount your bank allows you to withdraw beyond your account balance. They help cover unexpected expenses.

How do I know my overdraft limit?

You can find your overdraft limit by checking your bank statements, online banking account, or by contacting your bank directly.

Are there fees associated with overdrafts?

Yes, most banks charge overdraft fees when you exceed your limit. It's important to review your bank's fee structure.

Can I increase my overdraft limit?

Yes, you can request an increase in your overdraft limit by contacting your bank. They may require a review of your account.

What happens if I exceed my overdraft limit?

If you exceed your overdraft limit, your bank may decline the transaction or charge you additional fees.