OD full form

OD full form

Over Draft

What is the meaning of OD and full form ?

An overdraft in banking terms is a loan that is given by the bank to a customer on the basis of a fixed deposit or account that is kept with the bank as collateral.If the interest on the FD is 6% then the bank will charge you 7% as interest on the overdraft loan and the amount will be equal or little less than the FD value.