QUICK QUESTION 10 POINTS : Can you make a transfer in overdraft?
Ie I hae £24 in my account I wish to make a £310 transfer into overdraft into someone elses account, it should do it with a £1000 limit right? Why is it not going through?
- roderick_youngLv 71 month ago
I will yield to a UK answer, but if overdraft works like the USA, then it came from the days of paper checks. A person might have been unaware of the balance in their account, and unwittingly write a check for which there were not funds. Or, they would write a check, counting on a deposit being made before the payee actually deposited the check. Because of the inexact timing of the check being deposited, the bank might allow some overdraft, usually with an additional fee. (I'm not covering the case where the payer knew full well that there weren't funds, and that there wouldn't be - technically illegal, and there was a bad word for such a person.)
With an electronic transfer, the deposit is happening right away, so the bank already knows whether there are funds to cover it or not, so can deny a transfer on the spot.
There are other mechanisms for getting a loan from the bank, such as a cash advance on a credit card, or equity line of credit. Those are not without cost, however. £1000 is pretty high for overdraft protection - are you sure it isn't a line of credit or something?
- TavyLv 71 month ago
No you cannot give someone money you don't have.
An overdraft is for you to use not give to someone else.
- Casey YLv 71 month ago
They wont let you overdraft on a transfer...thats a deliberate attempt to spend more than available.
Overdraft covers you when you write a check and they protect your account from bouncing...but wouldnt apply to a real-time transaction when the money isnt there.
So, you could technically write your friend a check, which they could take to their bank...but deliberately writing a check you know cannot be honored is bank fraud...just pointing that part out...