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Apr 15
A cheque is a written order from an account holder to their bank to pay a specified amount of money to a named recipient. The bank then withdraws the funds from the account holder's account and transfers them to the recipient.
An overdraft, on the other hand, is a financial arrangement where a bank allows an account holder to withdraw more money than they have in their account, up to a certain limit. The account holder is essentially borrowing money from the bank, and they are charged interest on the amount overdrawn.
In summary, a cheque is a method of payment, while an overdraft is a form of borrowing money from a bank.
An overdraft, on the other hand, is a financial arrangement where a bank allows an account holder to withdraw more money than they have in their account, up to a certain limit. The account holder is essentially borrowing money from the bank, and they are charged interest on the amount overdrawn.
In summary, a cheque is a method of payment, while an overdraft is a form of borrowing money from a bank.
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