overdraft-limit

Vocabulary Word

Definition

'Overdraft-limit' is the maximum amount of money your bank lets you spend or withdraw even if you have less or no money in your account. You'll have to pay it back to the bank with interest.

Examples in Different Contexts

In banking, an 'overdraft limit' is the maximum amount a bank allows you to overdraw from your account. A bank manager might state, 'Your overdraft limit is set based on your account history and creditworthiness, to help manage the risk of overdrafts.'

Practice Scenarios

Creative

Scenario:

We're thinking of a new campaign for the banking services and we need to focus on the flexibility and security they offer.

Response:

For the campaign, can we highlight the convenience of an overdraft limit, and how it can offer financial flexibility?

Business

Scenario:

Due to rising costs and a decrease in cash reserves, we might have to use our credit facilities.

Response:

I agree. I suggest we review our overdraft limit and engage with the bank if required.