Bank interest refers to the cost incurred by a borrower for the privilege of using funds from a financial institution. This charge is calculated based on the daily cleared overdraft balance or a committed loan, with the interest rate typically consisting of the base rate plus an additional percentage ranging from 1% to 5%.
A bank overdraft occurs when an account holder withdraws more money than is available in their bank account, creating a negative balance.
A situation where an account does not have enough funds to cover a transaction, such as a presented check. This often results in the check being dishonored by the bank.
An overdraft is a loan provided by a bank or building society for a customer with a cheque account, allowing the account to go into debit, up to a specified limit known as the overdraft limit.
A rubber check refers to a check that cannot be processed due to insufficient funds in the account it is drawn from. The term 'rubber' signifies the check's ability to bounce back, similar to a rubber ball, indicating its return to the issuer by the bank.
An uncommitted facility represents a provisional agreement wherein a bank may lend funds to a company on a short-term basis, though it is not legally bound to extend the specified amount.
