ELI5: Explain Like I'm 5

Overdraft

Overdrafts are like a loan that your bank gives you. They happen when you try to take out more money from your bank account than you actually have. For example, let's say you have $10 in your bank account, but you accidentally try to take out $20. The bank will let you take out the extra $10 and will give you a loan. You will have to pay the loan back plus an extra fee.