GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Overdraft Annual Cost


Synonyms:overdraft annual fee, overdrawn, yearly service cost
Filed Under: financial-banking
Tags: banking
 

Definition of overdraft annual cost

overdraft annual cost
1. Fee charged to the accountholder by the institution to cover the overdraft feature on the chequing account. This fee is charged even if the overdraft protection is never activated. This fee may be charged in addition to the one-time fee.

Related Terms and Acronyms:

  • number of free transactions per month   The number of transactions an account holder is allowed to make before being charged a fee. If the limit is exceeded, a per-item charge is applied. Some accounts offer an unlimited number of free transactions or no free transactions per month.
  • over-the-limit fee   A fee charged for exceeding the credit limit on the card.
  • overdraft (DR)   The amount that a cheque exceeds the available balance in the payor's account; also insufficient funds.
      ➥  Bank account transaction code.
  • overdraft protection   A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.

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