§ 7458 Overdraft Loans For Accounts

• •Banks or credit unions can let you spend more money than you have in your account, but only for checking accounts.
• •There are rules set by the government that the bank must follow when they let you do this.
• •This is only for special accounts you use every day, like for paying with a debit card or writing checks.

You have $50 in your checking account, but you buy groceries for $70 with your debit card.

The bank might let you do this and cover the extra $20, but they have to follow special rules to make sure they're not being unfair. You'll usually have to pay the bank back, often with extra fees.