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When you go to take out money and not really knowing the contents of your bank account and lets say you need $40 and you have $38, the bank will let you take it out if you don't have overdraft protection. But, they will charge you (depending on what bank you have) an overdraft fee from $5-35. Since you only had 38 you will be negative $2. The bank will give you till the end of the day to become back positive and if you fail to do so, then they will charge you the overdraft fee PLUS the extra $2, in this example.

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12y ago

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