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What is overdraft protection?

 

What is overdraft protection?

The Bankrate.com financial term of the day is: "Overdraft Protection."

Overdraft protection is a sort of insurance policy against bounced checks and the fat fees they can trigger. It's a service that keeps your checking account from going into the red by linking it to another account or line of credit so that you won't wind up overdrawn or with insufficient funds.

Have trouble balancing your checkbook? Overdraft protection can keep it from tipping into negative territory.

To find a bank account that has what you're looking for, visit the Checking & Savings section at Bankrate.com.

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