Banky team Reviewed editorial answerAn overdraft is a credit limit that allows you to withdraw or pay more than the available balance in your account up to an agreed-upon limit.
Key points
You are using bank funds, so there is often interest or fees on the amount used.
It's suitable for short-term liquidity if calculated, but it's not "free extra credit" and not a permanent source of income.
The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.