Which description matches overdraft protection?

Which description matches overdraft protection?

• A. An insurance policy for bank accounts
• B. A savings account with no minimum balance
• C. A loan banks offer to customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest
• D. A refund of ATM fees

Answer: (C)

Overdraft protection is a service banks offer to cover transactions when you spend more than your available balance. It acts like a short-term loan or line of credit that pays the overdraft, often for a fee and with interest. This helps keep payments from being declined and can apply to debit purchases or ATM withdrawals. The other options don’t fit: it isn’t an insurance policy for bank accounts, it isn’t simply a savings account feature, and it isn’t a refund of ATM fees.

Overdraft protection is a service banks offer to cover transactions when you spend more than your available balance. It acts like a short-term loan or line of credit that pays the overdraft, often for a fee and with interest. This helps keep payments from being declined and can apply to debit purchases or ATM withdrawals. The other options don’t fit: it isn’t an insurance policy for bank accounts, it isn’t simply a savings account feature, and it isn’t a refund of ATM fees.