what are the pros and cons of overdrafts 
the pros of overdraft involve providing coverage when an account unexpectedly has insufficient funds avoiding embarrassment and returned check charges from merchants or creditors but it s important to weigh the costs overdraft protection often comes with a significant fee and interest which if not paid off in a timely manner can add an additional burden to the account holder according to the cfpb customers who had overdraft protection in fact often paid more in fees than those without it 7the bottom linean overdraft is a temporary loan that allows bank customers to continue paying bills or withdrawing money even after their accounts are empty this can be useful in emergencies especially if the bank offers overdraft protection however overdrawing an account incurs additional penalties or interest and should be avoided if possible 