Überziehung

Überziehung, meaning overdraft in English, refers to a situation where an individual withdraws more money from their bank account than is currently available. This can occur through various means, such as writing checks that exceed the balance, making debit card purchases, or ATM withdrawals. Banks typically have policies in place to handle such situations.

When an Überziehung occurs, the bank may cover the transaction, leading to a negative balance. For this service, banks usually charge a fee, which can be a flat rate or a percentage of the overdrawn amount. Additionally, interest may be applied to the negative balance until it is repaid. The specific fees and interest rates vary significantly between financial institutions.

Some banks offer an overdraft protection service, which can be linked to a savings account or a line of credit. This service can help to cover overdrafts and potentially avoid higher fees. However, overdraft protection services may also come with their own fees or interest charges. Understanding the terms and conditions of one's bank account is crucial to avoid unexpected costs associated with Überziehung. Repeated or significant overdrafts can also negatively impact an individual's creditworthiness.