Over Draft – Features and Benefits

OD account stands for Overdraft account. It is a type of account in which you can withdraw amount even if there is no fund in your account. The bank sanctions a specific limit and your account can go in negative up to that limit. You have to pay interest only on the amount taken as loan With the availability of an active account with any of the banks, the customer is offered several advantages. One such benefit is the overdraft facility that has been made easily accessible to account holders. As per this facility, the customer is allowed to withdraw money from their bank account even though the balance shows zero. It is important to know that, overdraft facility is usually offered to withdraw a limited amount. Overdraft limit is basically the money value permitted by the bank which can be withdrawn additional to the credit bank balance. Moreover, the bank also charges extra fees if a customer exceeds his/her overdraft limit, or for bounced payments.