Xbox Support Services Nationwide overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. Basically, an overdraft means that the bank allows customers to borrow a set amount of money.
What Is an Overdraft?
An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.
Basically, an overdraft means that the bank allows customers to borrow a set amount of money. There is interest on the loan, and there is typically a fee per overdraft. At many banks, an overdraft fee can run upwards of #500
How Xtob Support Services an Overdraft Works
With an overdraft account, a bank is covering payments a customer has made that would otherwise be rejected, or in the case of actual checks, would bounce and be returned without payment.
KEY TAKEAWAYS
Overdraft protection is a loan provided by some banks to customers when their account reaches zero.
The overdraft allows the customer to continue paying bills even when there is insufficient money in the customer's account(s).
An overdraft is like any other loan, the customer pays interest on the loan and, in the case of overdrafts, will typically have a one-time insufficient. The overdraft protection, it's possible that you can increase your debt to the point where it could affect your credit score. However, this won't show up as a problem with overdrafts on your checking accounts.
As with any loan, the borrower pays interest on the outstanding balance of an overdraft loan. Often, the interest on the loan is lower than the interest on credit cards, making the overdraft a better short-term option in an emergency. In many cases, there are additional fees for using overdraft protection that reduce the amount available to cover your checks, such as insufficient funds fees per check or withdrawal.
An Example of Overdraft Protection
Xtob Support Services Overdraft protection provides the customer with a valuable tool to manage their checking account. If you're short a few dollars on your rent payment, overdraft protection ensures that you won't have a check returned against insufficient funds, which would reflect poorly on your ability to pay. However, banks provide the service because of how they benefit from it—namely, by charging a fee. As such, customers should be sure to use the overdraft protection sparingly and only in an emergency.
The Naria amount of overdraft protection varies by account and by the bank. There are pros and cons to using overdraft protection. Often, the customer needs to request the addition of overdraft protection. If the overdraft protection is used excessively, the financial institution can remove the protection from the account.
Special Considerations
If you don't pay your overdrafts back in a predetermined amount of time, your bank can turn over your account to a collection agency. This collection action can affect your credit score and get reported to the three main credit agencies: Equifax, Experian, and TransUnion. It depends on how the account is reported to the agencies as to whether it shows up as a problem with an overdraft on a checking account.
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Related Terms
Non-Sufficient Funds
Non-sufficient funds is a banking term indicating that an account does not have enough money to cover a presented instrument or has a negative balance.
Bounced Checks Explained
A bounced check is slang for a check that cannot be processed because the writer has insufficient funds. more
Checking Account
Related Terms An overdraft limit is a borrowing facility which allows you to borrow money through your current account.
There are two types of overdraft - arranged and unarranged.
An arranged overdraft is a pre-agreed limit, which lets you spend more money than you have in your current account. It can be a safety net to cover short-term outgoings, like an unexpected bill. It is not suitable for longer-term borrowing. We charge you for every day of the month that you use your arranged overdraft where you go beyond any interest free limit you may have.
An unarranged overdraft is when you spend more money than you have in your current account and you have not agreed an arranged overdraft limit with us in advance or you have exceeded an existing arranged borrowing facility.
You can only make payments from your account if you have enough money in your account or through an arranged overdraft to cover them. First Bank will always attempt to return any transaction that could take your account into an unarranged overdraft position. Having enough money in your current account or having an arranged overdraft limit could help prevent payments such as priority bills from being returned unpaid.
On very rare occasions we may be unable to return a payment (e.g. due to an offline transaction made on a flight) and the account may enter an unarranged overdraft. No additional charges will be applied in this situation.
Information regarding the conduct of your account may be sent to credit reference agencies. As with any debt or borrowing, this may affect your ability to get credit in the future.
Our Eligibility tool can show you the likelihood of getting an arranged overdraft and the overdraft calculator lets you see how much it could cost to use an overdraft. To use these tools and find out more about overdraft charges, please scroll back up this page.
Non-Sufficient Funds
Non-sufficient funds is a banking term indicating that an account does not have enough money to cover a presented instrument or has a negative balance.
Bounced Checks Explained
A bounced check is slang for a check that cannot be processed because the writer has insufficient funds.
Checking Account
A checking account is a deposit account held at a financial institution that allows deposits and withdrawals. Checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods.
Linked Savings Account
A linked savings account is a savings account that is connected to another type of account like a checking account.
Offline Debit Card
An offline debit card allows a cardholder to pay directly from their bank account without a pin and with a delay of debit from their account. more
Why You Might Need a Cashier’s Check and How to Get One How to secure agreed credit when your account reaches zero - a type of social investment
What does it mean?
This is an extension of credit from a lender when a borrower’s account reaches zero. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be “overdrawn”. If there is a prior agreement with the bank for an overdraft, and the amount overdrawn is within the authorised limit, the interest is normally charged at an agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.
Who might use it?
Overdrafts allow the organisation to continue withdrawing funds from an account even if there is no money left in it. Therefore, it is borrowing money at a pre-set interest rate and the overdraft limit itself will be set beforehand.
An overdraft is offered by most commercial banks, but is more difficult for charities and social enterprises to obtain. However, there are now more organisations willing to provide overdrafts to the sector.
Who provides it?
Xtob Support Services Nationwide offers an overdraft facility to current Xtob clients.
Commercial banks may approve an overdraft facility to a civil society organisation (e.g. Ecobank, First bank, UBA etc.).
The Xtob Support Services offers an overdraft facility with an agreed limit.
Xtob Support Services offers overdraft facilities to clients who have taken out a loan and have a current account with the bank.
Xtob Support Services provides overdraft facilities for up to £1 million secured and £50,000 unsecured.
Case study - Voluntary Action Barnsley
For many voluntary sector organisations, cost control and sustainability can often be achieved by the ownership of their own premises, which can then be used to generate income. Increasingly this means like-minded organisations coming together to share buildings, services and facilities.
The bank agrees to loan you a certain amount for a short time, and you can go on spending up to that limit. You will have to pay back what you spend from your overdraft, plus interest. Interest rates on an overdraft can be high, but you only pay interest on the amount you use.
To support our customers through the impacts of the Coronavirus we are making the following changes from the 9th April 2020:
The first #500 of your arranged overdraft will be interest free
If your arranged overdraft is lower than these amounts all of it will be interest free
This automatic buffer will end on 9th July 2020 for all customers
If you already have an arranged overdraft, you do not need to take further action
You can apply for or increase an arranged overdraft using the mobile app, online banking or by calling us. You can also check your eligibility using our eligibility checker
Further information on all the available support for Coronavirus can be accessed through our dedicated help and support page
After 9th July 2020 the interest free amounts on our accounts are set out below
There are no changes to Student account overdrafts
This was the case for NCVO-members Voluntary Action Barnsley (VAB), who, as a long-standing Unity Trust customer, approached the bank for a loan to finance its new building, aptly-named as The Core in the centre of Barnsley.
The Bank agreed loan finance to meet VAB’s aims of sourcing additional development capital of £1.25m, which on completion which converted to a term loan of £0.75m. This involves a large scale overdraft to accommodate capital expenditure. As a result, VAB have a modern and vibrant building in the heart of Barnsley town centre, and forms part of the Remaking Barnsley Initiative.
Xtob aim was to turn the centre into both DDA-compliant accommodation for its own staff, as well as providing a wide range of office accommodation and conference facilities, with state-of-the-art technology for other like-minded organisations in the town. The venue is adaptable to cater for a variety of events including conferences, meetings, counselling and training, all at the heart of the lagos business community.
As well as the internal technology, The Core was built with sustainable features such as a biomass boiler, glazing with high thermal insulation, solar control and the sedum moss roof garden provides both insulation as well as a leisure space for staff, tenants and visitors. All of which have contributed to it earning a Excellent rating in terms of a being a green building.
Features and benefits
Only pay when you use it - Setting up an arranged overdraft is free and you’ll only pay daily arranged overdraft interest if you use it.
Managing your arranged overdraft - You can reduce, remove or apply to increase your arranged overdraft using Online or Mobile Banking as well as in branch or through Telephone Banking. But you must repay anything you owe if you want to remove an arranged overdraft or anything over the new reduced limit you want. This application won't affect your credit score.
Tools to help you decide - You can also check your eligibility and calculate the cost of any arranged overdraft at any time using the tools provided.
Receive text message alerts – If we have a mobile number for you, we’ll help you keep an eye on your balance. Find out more here.
Grace period - You have until midnight to bring your account back in to credit to avoid daily arranged overdraft interest for that day. You can do this by transferring money from another personal account you have with us via Mobile Banking, Online Banking, Telephone Banking or pay in cash over the counter in a branch.
About unarranged overdrafts
If you don't have enough money in your account or available arranged overdraft to make a payment, we may either let you borrow through an unarranged overdraft or refuse to make the payment. Missing payments and using an unarranged overdraft can damage your credit score, please get in touch with us as we may be able to help you.
All overdrafts are subject to our assessment of your circumstances and are repayable in full on demand. You must be aged 18 or over to apply.
If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances. Your borrowing options.
In summary, by recognising that its future could be more secure by owning its own premises, Xtob used a social investment from Unity to help deliver revenue, provide a central hub of expertise and support for the sector and provide an enterprise environment which encourages economic growth and sustainability for voluntary and community organisations within Nigerian
Funding and income: an overview
A cashier’s check is a check written by a financial institution on its own funds, sign
A checking account is a deposit account held at a financial institution that allows deposits and withdrawals. Checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods. more
Linked Savings Account
A linked savings account is a savings account that is connected to another type of account like a checking account. more
Offline Debit Card
An offline debit card allows a cardholder to pay directly from their bank account without a pin and with a delay of debit from their account.
Why You Might Need a Cashier’s Check and How to Get One
A cashier’s check is a check written by a financial institution on its own funds.